Corporate Finance 19

Corporate Finance 19 - Rate/# times nper*# times(multiply)...

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Call =max (So-K,0) Put =max (K-So,0) Put-Call Parity Bond Value=PV of Principle Bonds - Value of Put Bond Value= Value of Assets-Value of Call ESO Employee stock options Rights and Warrants Dilute shareholders Swaps Forward contracts to exchange cash flows Midterm Formulas # of years (Nper) a=x% PV=-# PMT=-# p. 164 I =Rate in Excel =NPER compounded multiple times/yr =NPER(…)/(# comp times(m)) In offers take one with highest PV EAR- Effective Annual Return p. 145 = [(1+{Annual Rate(Quoted)/m})^m] -1 Annual rate= %/100= decimal Interest Rate Calc When excel wont work FV=PV(1=I)^n I=nth root of FV/PV minus one PV= PMT[(1-1/{(1+i)^n})/i] Comp multiple times
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Unformatted text preview: Rate/# times nper*# times(multiply) Other Formulas NPV, irr, pi, mirr, etc. In book see bookmarks =rf + Equity Beta X Market Risk Premium On TI Calc I is percent no decimals One you want go to and hit alpha enter Loans and Mortgages Loan amount is PV FV= leftover/0 Annuity Dues Beginning Change type from 0 to 1 Finding portion of payments going to interest Use IPMT/PPMT interest/principal Outstanding Loan =PV N is months left to go FV=0 I is monthly rate PV of growing perpetuity PV=PMT(period 1)/(i-g) G can be positive of negative PV of nongrowing perp PMT/I APR p. 144 =I%/period*Periods...
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Corporate Finance 19 - Rate/# times nper*# times(multiply)...

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