Formula Book FIN 2210

Of return p1 r1 p2 r2 pn rn r n x pi ri i1 v un ux

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Unformatted text preview: umber of days since B last coupon payment C C Accrued interest = Coupon payment  B @ Number of days A in coupon period 0 C-3 C-4 Appendix C Selected Equations and Tables Dirty price = Clean price + Accrued interest Invoice price = Quoted price + Accrued interest CHAPTER 8 Expected rate of return = ^ = P1 r1 + P2 r2 + . . . + PN rN r N X = Pi ri i=1 vffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi uN uX Standard deviation = σ = t ðri − ^Þ2 Pi r i=1 vffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi uX uN u ðr t – r Avg Þ2 t Estimated σ = t = 1 N–1 σ Coefficient of variation = CV = ^ r . . . + wN^N ^p = w1^1 + w2^2 + r r r r N X r = wi^i i=1 bp = w1 b1 + w2 b2 + . . . + wN bN = N X wi bi i=1 RPM = rM – rRF RPi = ðRPM Þbi ri = rRF + ðrM – rRF Þbi CHAPTER 9 ^ Value of stock = P 0 = PV of expected future dividends D1 D2 D∞ + + ... + = ð 1 + rs Þ ∞ ð 1 + r s Þ 1 ð 1 + rs Þ 2 ∞ X Dt = t t = 1 ð 1 + rs Þ D0 ð1 + gÞ1 D0 ð1 + gÞ2 . . . D0 ð1 + gÞ∞ ^ Constant growth stock : P 0 = + + + ð 1 + rs Þ ∞ ð 1 + rs Þ 1 ð1 + rs Þ2 D0 ð1 + gÞ D1 = = rs – g rs – g Expected rate Expected Expected growth ra...
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This document was uploaded on 02/09/2014.

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