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Final Exam Formulas - Final Exam Formulas Exam 1 o...

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Final Exam Formulas Exam 1 Perpetuity PV= PMTi Holding period Return o Ending Price - Beginning Price + DistributionsBeginning Pricex 100% o Distributions DividendsNumber of Shares Future Value Simple Interest FV = PV1+in Present Value of an Annuity Due PVAD = , ( + ) - PMT x PVIFAi n 1 i n 1 Value of an Ordinary Annuity PVA = PMT x PVIFAi,n FVA = PMT x FVIFAi,n Average Tax Rate o Total Tax DueTaxable Income o Payment at the beginning of the period o ( + ) Payment 1 i o Uneven Cash Flow o PV =t=1nCFt1+it o Taxable Portion of Preferred Dividends Received o Taxable Portion =Dividend Income * (.3) o o Exam 2 o o Yield to Maturity/Yield to Call o Pm=I × PVIFAk,nM1+Kdn o Asked Quote o Pm = Face Value - $ discount o = ( ) $ discount Face DiscountMonths12 o Effective rate of interest o Compounded continuously ieff=ei-1 o Normal way ieff=1+inommm-1 Compounding more than a year o FVn=PV1+inommmn o Z-table/z-value o z= Target Value –Expected ValueStandard Deviation o o Exam 3 o o Net Present Value
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