Professional Documents
Culture Documents
[2.1]
[2.2]
[2.3]
[3.1]
[3.2]
[3.3]
[3.4]
[3.5]
[3.6]
[3.7]
[3.8]
Long-term debt
[3.9]
[3.10]
[3.11]
[3.12]
[3.13]
[3.14]
[3.15]
[3.16]
[3.17]
[3.18]
[3.19]
[3.20]
[3.21]
[3.22]
[3.23]
[3.24]
[4.1]
[4.2]
[4.4]
g = pS(R)/[A pS(R)]
= .132($500)(2/3)/[$500 .132($500)(2/3)]
= 44/[500 44]
= 44/456 = 9.65%
RO A R
Internal growth rate =
1 ROA R
[4.5]
[4.6]
[4.7]
p(S/A)(1 + D/E) R
g* =
1 p(S/A)(1 + D/E) R
[4.8]
[4A.1]
[4A.2]
[5.1]
[5.2]
PV (1 + r)t = FVt
PV = FVt/(1 + r)t = FVt [1/(1 + r)t]
[5.3]
[6.1]
1 1/(1 + r)t
= C
r
[6.1]
[6.2]
EAR = eq 1
[6.3]
[7.1]
1 + R = (1 + r) (1 + h)
[7.2]
1 + R = (1 + r) (1 + h)
R=r+h+rh
[7.3]
Rr + h
[7.4]
[7B.1]
P0 = (D1 + P1)/(1 + r)
[8.1]
P0 = D/r
[8.2]
D (1 + g)
0 = 1
P0 =
r g
rg
D (1 + g)
D +1
[8.3]
t
= t
Pt =
rg
rg
[8.4]
(r g) = D1/P0
r = D1/P0 + g
[8.5]
S VC = FC + D
P Q v Q = FC + D
(P v) Q = FC + D
Q = (FC + D)/(P v)
[11.1]
[10.1]
OCF = (S C D) + D (S C D) Tc
= (S C D) (1 Tc) + D
= Project net income + Depreciation
= $120 + 600
= $720
[10.2]
OCF = (S C D) + D (S C D) Tc
= (S C) (S C D) Tc
= Sales Costs Taxes
= $1,500 700 80 = $720
[10.3]
OCF = (S C D) + D (S C D) Tc
= (S C) (1 Tc) + D Tc
[10.4]
OCF = [(P v) Q FC D] + D
= (P v) Q FC
[11.2]
Q = (FC + OCF)/(P v)
[11.3]
[12.1]
[12.2]
[12.3]
[13.1]
E(R) = Oj Pj
j
2 = [Oj E(R)]2 Pj
j
E(RP) = x1 E(R1) + x2 E(R2) + . . . +xn E(Rn)
[13.2]
[13.3]
[13.4]
[13.5]
[13.6]
[13.7]
[13.8]
[13.9]
E(Ri) = Rf + [E(RM) Rf ] i
[13.10]
[13.11]
[13.12]
[13A.1]
[13A.2]
[13A.3]
+ . . . + xNCOV(RN,R2)]
CO V (R ,R )
2
M
2 =
2( R )
M
[13A.4]
RE = (D1/P0) + g
[14.1]
RE = Rf + E [RM Rf]
[14.2]
RP = D/P0
[14.3]
V=E+D
[14.4]
[14.5]
[14.6]
fA = (E/V) fE + (D/V) fD
[14.7]
[16.1]
E BIT
DFL =
EBIT Interest
[16.2]
Vu = EBIT/REu = VL = EL + DL
[16.3]
[14A.1]
Equity
Equity
+
Debt + Equity
Equity
Equity
Unlevered firm =
Debt + Equity
Equity
[14A.2]
[14A.3]
[15.1]
[15.2]
Ro = (Mo S)/(N + 1)
[15.3]
Me = Mo Ro
Re = (Me S)/N
[15.4]
[15.5]
[16.4]
E = A (1 + D/E)
[16.5]
[16.6]
VL = VU + TC D
[16.7]
[16.8]
[18.1]
[18.2]
[18.3]
[18.4]
[18.5]
[18.6]
[19.1]
[19A.1]
[19A.2]
[19A.3]
C* = (2T
F)/R
[19A.4]
C* = L + (3/4 F 2/R)1/3
[19A.5]
U* = 3 C* 2 L
[19A.6]
[19.A7]
[20.1]
[20.2]
[20.3]
[20.4]
[20.5]
[20.6]
[20.7]
NPV = v + (1 )P/(1 + R)
[20.8]
[20.9]
[20.10]
[20.11]
[20.12]
[20.13]
[20.14]
2T F
Q*2 =
CC
[20.15]
2T F
Q* =
CC
[20.16]
2T F
Q* =
CC
EOQ* =
2T F
C
C
[20.17]
[20.18]
[20A.1]
NPV = PQ + PQ (d )/R
[20A.2]
[21.1]
[21.2]
[21.3]
[21.4]
[21.5]
F1 = S0 [1 + (RFC RCDN)]
[21.6]
Ft = S0 [1 + (RFC RCDN)]t
[21.7]
[21.8]
[21.8]
[21.10]
[23.1]
C1 = 0 if (S1 E) 0
[25.1]
C1 = S1 E if (S1 E) > 0
[25.2]
C0 S0
[25.3]
C0 0 if S0 E < 0
C0 S0 E if S0 E 0
[25.4]
S0 = C0 + E/(1 + Rf)
C0 = S0 E/(1 + Rf)
[25.5]
Call option value = Stock value Present value of the exercise price
C0 = S0 E/(1 + Rf)t
[25.6]
[25A.1]
[25A.2]