Chapter 19
19-1
N=20,I'YR =8, PMT = 60, FV =1000
solved for PV = 803.64
then 1K - 803.64=196.36
Formula
196.36
19-2
19-3
A
25
exercise value of warrants = stock price - purchase price specified by warrant
-5
0
5
75
B
19-6
A
Alternative 1: Sell Common Stoc
FINC 5000
Homework Assignment for Week 1:
Chapter 1:
1. Describe the field of finance. How is it different from the field of accounting?
Finance field involves numerous corporate and government activities. Field of finance deals
with analyzing and forecas
Illustration of FCFF, FCFE, and APV Approaches to Valuation
Brigham and Ehrhardt Example in Chapter 21 (13th Edition)
Basic Inputs:
Tax Rate
Market Value of Debt (Mil)
Market Value of Equity (Mil)
Weight of Debt
Weight of Equity
Cost of Debt - Before Tax
Risk and Rates of Return
After reading this chapter, students should be able to:
Define dollar return and rate of return.
Define risk and calculate the expected
standard deviation, and coefficient of
probability distribution.
Specify
return.
Graph diversi