Review for Exam 1
Exam 1 will be in class on Oct. 4. There will be two parts to the exam. Part
1 will be short answer questions that will drawn on the basic concepts we learned.
Part 2 will be problems similar to HW problems.
The most e cient way
Formula Sheet for Exam 1
Holding period return of as investment
what you end up with - what you invested
what you invested
In the following formulae, r denotes the holding period return for an investment with a holding period of n days.
Homework Set 4
4. Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20%
for two years and then at 4% thereafter. If the required return for Deployment Specialists is
8.5%, what is the intrinsic value of D