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Unformatted text preview: n rg # Growing Perpetuity with diﬀerential growth (Covered in Ch. 5 and 6) Assuming g 1 for the ﬁrst n payments and g 2 thereafter, PV = C " 1( 1+ g 1 1+ r ) n rg 1 + (1 + g 1 ) n1 (1 + g 2 ) rg 2 × 1 (1 + r ) n # PV CCA Tax Shield (Covered in Ch.8) PV CCATS = CdT c k + d × 1 + 0 . 5 k 1 + kmin( C,S ) dT c k + d × 1 (1 + k ) n BlackScholes formula for a call option (Covered in Ch. 23) c = S × N ( d 1 )EerT × N ( d 2 ) d 1 = ln( S/E ) + ( r + σ 2 2 ) T σ √ T d 2 = d 1σ √ T 1...
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This note was uploaded on 04/24/2010 for the course ACTSC 371 taught by Professor Wood during the Spring '08 term at Waterloo.
 Spring '08
 Wood

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