Exam 1 EQN - Exclusion Corporate Tax Liability Tax = Base...

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FINA 3332 Exam 1 Equations Spring 2011 Chapter 1 Net Present Value Present Value of Future Cash Flows – Present Value of Cash Outlays Chapter 2 Abnormal Return = Realized Return – Expected Return Annualized Forward Premium or Discount Forward Rate-Spot RateSpot Rate x 12 Months# of Months Forward x 100% Holding Period Return Ending Price - Beginning Price + DistributionsBeginning Pricex 100% Chapter 2a After-Tax Cash Flows rAT=rBT(1-t) Taxable Income Revenues - Expenses + Interest Income - Interest Expense +Dividend Income* = Taxable Income *Taxable portion of Preferred Dividends Received = Dividends x 70% Dividend
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Unformatted text preview: Exclusion Corporate Tax Liability Tax = Base Tax + (Marginal Tax Rate x Amount over Base Income) Average Tax Rate = Total Tax DueTaxable Income Chapter 5 Compound Interest FVn = PV01+in Future Value of Ordinary Annuity FVA = PMT x FVIFAi,n Future Value of Annuity Due FVAD = PMT x FVIFAi,n (1+i) Present Value of Annuity PVA = PMT x PVIFAi,n Present Value of Annuity Due PVAD=PMT x PVIFAi,n (1+i) Deferred Annuity Step 1) Present Value of Annuity Step 2) Present Value at Time Zero Perpetuity PV= PMTi Uneven Cash Flows PV =t=1nCFt1+it...
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