Formulas_Cover_Sheet_Exam_3_BUS_FIN

Formulas_Cover_Sheet_Exam_3_BUS_FIN - Interest × = $ Price...

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Formulas Cover Sheet – Exam 3 – Chapters 6-7 Notes: 1. the only problems that you would not have to show your work for would be the bond value and the yield-to-maturity problems. 2. this cover sheet includes some formulas that were not used in our homework this term (so do not worry about them), but which may be covered in future semesters. Chapter 6: k 1 = k* + IP + RP 1 k 1 = R F + RP 1 R F = k* + IP ( 29 ( 29 + × + + × = = n d n t t d k M k I B 1 1 1 1 1 0 + × + + × = = n d n t t d k M k I B 2 2 1 0 2 1 1 2 1 1 2 Value Par Rate Coupon
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Unformatted text preview: Interest × = $ Price Market Current Rate Coupon Yield Current = Bond Price in $ = Bond Quote x $1,000 NET CHG = Close Price – Previous Day’s Close Price Chapter 7: s k D P 1 = g k D P s-= 1 where, if D 1 not given, D 1 =D x (1 + g) g P D k s + = 1 where, if D 1 not given, D 1 =D x (1 + g) Price = (Company’s Projected EPS x Industry P/E Ratio) ( 29 ( 29 ( 29 ∞ ∞ + + + + + + = a a a c k FCF k FCF k FCF V 1 ...... 1 1 2 2 1 1 V S = V C- V D- V P ( 29 [ ] F m F s R k b R k-× + =...
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Formulas_Cover_Sheet_Exam_3_BUS_FIN - Interest × = $ Price...

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