Formula Sheet Chapters 1-12 - Finance 100 Fall 2007 Final...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Finance 100 Fall 2007 Final Exam Formula Sheet Chapter 7 - Interest Rates and Bond Valuation Coupon Rate 20% = Annual Coupon Payment/Bond Face Value Bond Value = Present Value Coupon Annuity + Present Value Bond Face Value BV = C [(1-{1/(1+r) t })/r] + Face Value/(1 + r) t Yield to Maturity 14% = Solve above equation for “r” via trial and error OR via financial calculator. 0 coupon 6.76% Fisher Effect: 1+ Nominal Return (R) = Real Return (1+r) x Inflation (1+h) - or - 1+R = (1+r) x (1+ h) = 1+(r+h) + rh Chapter 8 - Stock Valuation Zero Dividend Growth = P 0 = D/R Constant Dividend Growth = P 0 = D 1 /R-g Required Return = %R = D 1 /P 0 + g Dividend Growth Model = P t = [D t x (1+g)]/(r-g) = D t+1 /(r-g) Cumulative Votes Needed to Win Election = 1/(1+N) + one share % Dividend Yield = Annual Cash Dividend/Current Stock Price = D 1 /P 0 Chapter 9 - NPV and Other Investment Criteria Payback = Length of time until summation of project’s cash flows = original cost. IRR
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2008 for the course FIN 100 taught by Professor Staff during the Spring '08 term at Pennsylvania State University, University Park.

Page1 / 4

Formula Sheet Chapters 1-12 - Finance 100 Fall 2007 Final...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online