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Final Formula Sheet

# Final Formula Sheet - Formula Sheet FINA4200 Final Exam...

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Formula Sheet: FINA4200 Final Exam 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 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 * r sL + w d * r d Unlevered Cost of Equity Tax Savings = Interest Expense * Tax Rate

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Standard Normal Table Instructions: 1. This table helps you calculate normal probability, N(d).
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Final Formula Sheet - Formula Sheet FINA4200 Final Exam...

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