formula_sheet_for_final

formula_sheet_for_final - 1 1 1 1 (1 TaxRate) t t t t t...

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( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 1 1 1 3 1 2 0 2 3 1 2 3 ln 1 1 ln 1 1 1 1 Nom 1 1 Real 1 Infl 1 ... 1 1 1 1 1 1 1 n n n n n n n n n FV FV FV PV FV PV r PV r n PV r r CF CF CF PV PV PV r r r g r CF CF CF CF NPV EAC NPV CF r r r r r r r ÷ = + = = - = ÷ + + + = - = = + = - + + = = + + + + + + + + + - + 1 2 2 2 2 2 2 2 2 2 2 1 2 1 1 2 2 ... [ ] [ ] [ ] [ ] [ ] ( [ ] ) 2 ( ) ( ) ... ( ) 2 1 T a e d p A A B B i f i m f p A A B B A B A B AB T e a a P R R R E D E R R E R w E R w E R D E D E T E R r E R r w w w w R R R R R R D R T E W W β σ σ σ ρ + + = + = = = + + + = + - = + + - + - + + - = = + ± - = + Annual Interest Tax Shield (ITS) = TaxRate(r d D) E=mc 2 PBR= ( 29 # of compounding periods
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Unformatted text preview: 1 1 1 1 (1 TaxRate) t t t t t Assets equity debt P P P D R EAR r P E D P WACC r r r r E D P E D P E D P---+ = + = + = = +-+ + + + + + + V New = V Old + Equity + Debt + PV ITS Transaction Costs Finance = Fun...
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This note was uploaded on 03/23/2012 for the course FIN 350 taught by Professor Schonlau during the Fall '08 term at University of Washington.

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