Final Formula Sheet - Formula Sheet: FINA4200 Final Exam...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Options and Corporate Finance Payoff Option Call 0] E, - [ T S Max C = Payoff Option Put 0] , [ T S E Max P = Parity Call - Put S ) 1 ( 0 0 0 + = + + P r E C T Option Call a of Delta Stock of Swing call of Swing L T H T L H S S C C = = Δ Option Call a for Borrowing r 1 S f L T + × Δ = L C Borrowing Option Call for Formula Scholes - Black ) N( ) N( 2 1 0 d Ee d S C rT × × = Formula Scholes - Black in d and d ) 2 ( ) / ln( 2 1 1 2 2 1 T d d T T σ r E S d σ = + + = Capital Structure Taxes) (No n Propositio M M V u = L V Taxes) Corporate (With n Propositio M M D T V u × + = L V Taxes) Corporate (With n Propositio M M D (1 - (1 V u × × + = ) 1 ) 1 ( ) d s c L T T T V Equation Hamada S D T) 1 b u × + × = 1 ( b Merger and Acquisition NOPAT = EBIT * (1 – Tax Rate) Free Cash Flow (FCF) = NOPAT - Net investment in operating capital Model Growth Constant g r CF PV = 1 R sU = w s Savings = Interest Expense * Tax Rate
Background image of page 1

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

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

This note was uploaded on 06/06/2011 for the course FINA 4200 taught by Professor Wu during the Spring '08 term at University of Georgia Athens.

Page1 / 4

Final Formula Sheet - Formula Sheet: FINA4200 Final Exam...

This preview shows document pages 1 - 2. Sign up to view the full document.

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