Professional Documents
Culture Documents
A
A
Growth Model Gordon’s growth approximation The weighted average cost of capital The Fisher formula
Purchasing power parity and interest rate parity = 2C D C 0 h Return point = Lower limit + ( 1
3 spread Spr × ) ead transaction cost variance of cash = × × 3 3 4 flows interest rate
1 3 Er R Er R i fim f ( ) = + β ( ( ) – ) β β a e e d e d e d V VV T V T V V = ( + ( ))
+ ( ) 1 + 1 – 1 – – T d ( ( ))