Midterm 2 formula sheet

Midterm 2 formula sheet - P o = D 1 r s – g Free Cash...

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Midterm 2 formula sheet Quoted Interest Rate: r = r * + IP + DRP + LP + MRP Risk free rate: r RF = r * + IP N Bond Value: ∑ INT + M i = 1 (1 +r d ) t (1+r d ) N ^ N Expected Rate of Return: r = P i r i i = 1 N ^ Standard Deviation: ơ 2 = ( r i – r i ) 2 P i i = 1 Coefficient of Variation: CV = ơ r Market Risk Premium: RP m = r m - r RF Security Market Line: r i = r RF + (r m - r RF )b Constant Growth Model:
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Unformatted text preview: P o = D 1 r s – g Free Cash Flow: FCF = [EBIT(1 – T) + Depr. and Amort.] – [Cap. Exp + ∆NWC] Market Value of Company: Vcompany = PV of expected future free cash flow Horizon Value: V company at t=n = F CF N+1 (WACC – g FCF ) Return on Preferred Stock: r ps = D ps V ps...
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This note was uploaded on 02/22/2012 for the course BUAD 3040 taught by Professor Morris during the Spring '08 term at Toledo.

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