ADMS3530-FinalFormulaSheet

ADMS3530-FinalFormulaSheet - AP/ADMS 3530.03 Finance Final...

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

View Full Document Right Arrow Icon
1 AP/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 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
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 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
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

ADMS3530-FinalFormulaSheet - AP/ADMS 3530.03 Finance Final...

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

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