crib%20sheet - E I nation List - Comm 308 — Booth-Clea...

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Unformatted text preview: E I nation List - Comm 308 — Booth-Clea Text FV 3 Present Value of F V : PVEl = " H + k)" Future value of an annuity: FF; = + k)" — 1] 5.4 k Present Value of an annuity: PK] 2 M 1— 1 _ k (Ml PMT .8 Present value of perpetuity: PV0 = T . 0 Effective rate with continuous compounding: k = e9” —1 if Effective rate: k ={1+ QRN “on LI} LII _ LII 5.11 ._1 m PMTn(l+g)_% k—g _k—g Pm[1_(1+gl"] 5A-2 Present value of growing perpetuity: PK) = U1 3.’ .p. Present value of rowi ' :PV = — — g ngannulty 0 k_g L1+kJ 6.3 Current Yield: CY = W Price of T-Bill given BEY: P = EPS 7.10 Share price with growth opportunities: I; = k ‘ + PVGO 7‘11 Growth rate: g = b * ROE . . . . CF] P1 — 1;, Total return = Income yield + Capital gain (loss) y1elcl = ? + 0Q U1 00 00 . 9° . 9° 4 I...) E(RP)=RF+[MJJP O-A Slope ofCML =—E§M—“—R—F— 0- M Sharpe Ratio = M 0P COV: pi 0'; 9.? 0M 0M fly =wAflA +w3fl3 +...+Wnfln fe=RF+(ERM-RF)£i Option Premium = TV + TV Put Call Parity: P + S = C + PV(X) CF CF CF CF " CF NPV= ‘ + 2 + 3 +K+ " —CF;)=Z ’ —CP;) r=l (1+ it) (me) (Hi)2 (1+kj (1+k)’ PV Cash inflows , CF, = CFBT, (1 —T) +CCA, (T) - . NPV = PV(CF,)+ PV(ECF,,)— CFO CFBT(1—T 1_ 1 k (my (Cow?) * (1+ 0-50 _ (SKXa’XT) * 1 d+k (1+k) d+k (1+k)" KS+K1—TD D m=#=1{ §+Kd(l_T)_ V V 8V V WACC=K £+K iJ-~I—K2, Where:K.=K(1—T) eV pV fV r d .10 Market value: S = 13:) x n 10—1”) 1_ 1 +Fl 1 K 1‘ 1+ f f dh ' —D/ - Costo pre erre s ares.Kp_ NP D 20.17 K =—'+ Dl _ 20.21 c=—+g +b*ROE Po 1% Cost of new equity: K = K * i "e e NP ii .2 12. Lo.) ._. ._. . N U1 1 H 14,6 PV(0perating Cash F lows) = Hy—II—n #4345 UI-h-M 14.7 PV(CCA Tax Shield): Cost of Capital: Kc = N .0 \o O N M O ._. .3; 20.13 Net proceeds: NP = pg; 20.27 ...
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This note was uploaded on 02/27/2012 for the course BUSINESS 101 taught by Professor All during the Spring '09 term at McGill.

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crib%20sheet - E I nation List - Comm 308 — Booth-Clea...

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