g= rs – yield P3= Po (1+g)3 D0= D1/ (1+g)

rs= yield + g Pp=Dp/rp D1= P0 (rs-g)

FCF1= FCF0 (1+g)
HV= FCF1/ (WACC-g)
CAPM:
D1=D0 (1+g)
rs= rRF + b (RPM)
P0= D1/ (rs-g)
TV in millions:
T=2 HV2= FCF2 (1+g) / (WACC-g)
FCF1/ (1+ WACC)1 + (FCF2 + HV2) / (1+WACC)2
Nom rs= Annual Dividend/ Price
Eff rs= (1+(Qtr Div/P))N -1
Table: TV= D5 / (r5 - g5) PV= (1+rs)-1 x Div
Year/FCF
g= FCF3/FCF2 -1
HV2= FCF3/ (WACC-g)
Value or operation= FCF1/(1+WACC) + (FCF2 +
HV2) / (1+WACC)2
EV= P1(r1) + P2(r2)
SD= (r-EV)2 x Prob
CV= SD/EV
rs= (Currently Selling Price- Common Stock per share +
Cash dividends) / (Common Stock per share)
r= RF +b (KM-RF)
Cost or preferred stock (WACC)
= DP/ (Pp (1-F))
Cost of equity: Rs= rd + Risk premium
CAPM: rs= rRF + (RPm X b)
DCF: DI/Po + g and Di= Do x (1+g)
New common stock: re=Di/(Po x (1-F))+g
WACC= wd x rd x (1-t) + wp x rp +Wc x rs
rd(1-T)
rs= Di/Po +g
WACC= wd (rd) (1-T) + wc (rs)