Final Exam Formulae_436

# Final Exam Formulae_436 - 1 E D E D CoD(L L CoE CoE(u c c...

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FBE 436 Final Exam 1 FORMULAE RELEVANT TO THE MATERIAL CIRP & RFX : ( ) () 360 1 360 1 * , , , T i T i S F T t T t t T t + + = , CPI CPI S RFX * = . Forward Premium: T S S F 360 . Relative PPP: CPI CPI S Const * = ; approximate form: * π = S g ; * 1 1 1 + + = + S S . FX Exposure: t t K K t t t S S S V ε β α + + + + = , , 2 2 , 1 1 \$, ... , K K S V = \$ . t t S K t S t S t V K g g g g γ + + + + + = , , 2 , 1 , \$ ... 2 1 . k k K k S V S V \$ \$ = . CAPM, WCAPM & IAPM: ( ) () M j M f j RP E R R E * , + = , ( ) ( ) W j W f j RP E R R E * , + = , ( ) ( ) ( ) W W j Country Country j f j RP E RP E R R E * * , , + + = , where () ( ) f R R E RP E .

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FBE 436 Final Exam 2 Capital Budgeting: [] () [] [] [] N N N N N n n c N n n n u CoE TermVal TxShield u CoE TermVal TFCF L CoD Int u CoE TFCF NPV ) ( 1 ) ( 1 1 ) ( 1 1 1 0 + + + + + + + = = = τ . () () () ( ) () ( ) g r g CF r g g r g CF r g CF T T T T t t t + = + + + + + = 1 lim , 1 1 1 1 , 1 1
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Unformatted text preview: 1 . ( ) ( ) E D E D CoD(L) L CoE CoE(u) c c − + − + = 1 1 1 ) ( . Valuation of Foreign-Origin Cash Flows: ( ) ( ) ( ) N lc t N t N i N i S S E + + = + 1 1 \$ . ( ) \$ \$ 1 1 1 1 i i CoC CoC fc fc + + + = + . β Project Local = Project US * Foreign Country . ( ) ( ) ( ) US Std Foreign Std US Foreign Corr Foreign , = ....
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Final Exam Formulae_436 - 1 E D E D CoD(L L CoE CoE(u c c...

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