FormulaSheet

# FormulaSheet - AK/ADMS 3530.03 Finance Final Exam Formula...

This preview shows pages 1–3. Sign up to view the full content.

AK/ADMS 3530.03 Finance Final Exam Formula Sheet Time Value of Money FV = () n r + × 1 Investment PV = () n r + 1 Value Future PV of a perpetuity = r C PV of a growing perpetuity = g r C 1 PV of an annuity = + × n r r r C ) 1 ( 1 1 = + × r r C n ) 1 ( 1 (easier to calculate) FV of an annuity = r + × r C n 1 ) 1 ( PV (Growing Annuity) = + + × n r g g r C 1 1 1 FV (Growing Annuity) = () ( ) [ n n g r g r C + + × 1 1 ] Annuity factor = + n r r r ) 1 ( 1 1 = + r r n ) 1 ( 1 (lower version is easier to calculate) PV (Annuity Due) = PV(Simple Annuity) × (1+r) FV (Annuity Due) = FV (Simple Annuity) × (1+r) 1 + Real rate = rate Inflation 1 rate Nomimal 1 + + APR = Period Rate × m EAR = ( 1 Rate Period 1 + m ) Period Rate = 1 ) EAR 1 ( 1 + m where m = number of periods per year

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

View Full Document
Bonds and Stocks Price of a bond = PV (Coupons) + PV (Face Value) = n n r r r r C ) 1 ( Value Face ) 1 ( 1 1 + + + × Current yield = price Bond payment Coupon Annual Rate of return = price Initial loss or gain Capital Income + Dividend yield = price Stock payment Dividend
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 07/10/2009 for the course FIN FIN taught by Professor Dr. during the Spring '09 term at Baptist College of Health Sciences.

### Page1 / 4

FormulaSheet - AK/ADMS 3530.03 Finance Final Exam Formula...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online