BCOR 2200 Spring 2009 Midterm 2 Formula Sheet

# BCOR 2200 Spring 2009 Midterm 2 Formula Sheet - t – ∆...

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Midterm 2 Formula Sheet (1 + R Nom ) = (1 + R Real )(1 + i) (Be able to solve for R Nom , R Real or i) `PV = FV/(1 + R) t FV = PV(1 + R) t P 0 = D 1 /(1 + R) + D 2 /(1 + R) 2 + … + D t /(1 + R) t P 0 = D/R P t = D t+1 /(R – g) P 0 = D 1 /(R – g) Div Yield = D 1 /P 0 R = D 1 /P 0 + g g = R – D 1 /P 0 D t+1 = D t (1 + g) P t = P 0 (1 + g) t P 0 = P t /(1 + R) t Market Cap = Shares x Price Payback = CF 0 /CF 1 (If CF 1 = CF 2 = … = CF N ) NPV = CF 0 + CF 1 /(1 + R) + CF 2 /(1 + R) 2 + … + CF N /(1 + R) N 0 = CF 0 + CF 1 /(1 + IRR) + CF 2 /(1 + IRR) 2 + … + CF N /(1 + IRR) N CF t = OCF t – NCS
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Unformatted text preview: t – ∆ NWC t OCF t = (Sales t – VC t – FC t )(1 – T) + T(Dep t ) Net Salvage Value = Market Value – T(Market Value – Book Value) Net Salvage Value = Sale Price – T(Sale Price – Book Value) Book Value = Cost – Accumulated Depreciation ∆ NWC t = NWC t – NWC t-1 Crossover rate = IRR of the CF differences NPV Sensitivity = ∆ NPV/ ∆ Variable...
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## This note was uploaded on 10/08/2009 for the course BCOR 2200 taught by Professor Tomnelson during the Spring '08 term at Colorado.

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