Theory of finance EXAM

FORMULAS

𝑃𝑉 = 𝐶/(1 + 𝑟)+

𝑃𝑉 = 𝐶 ,- . − -

.(-0.)1 2

𝑃𝑉 = 𝐶

𝑟 − 𝑔 51 − 6

1 + 𝑔 1 + 𝑟

7 + 8

𝑃𝑉 = 𝐶/𝑟 𝑃𝑉 = 𝐶/(𝑟 − 𝑔)

𝐸𝐴𝑅 = 61 + 𝐴𝑃𝑅 𝑚

7 =

− 1

𝑃𝑉 = 𝐶 𝑒?.+, 𝑒 = 2.718

1 + 𝑅𝑒𝑎𝑙 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑅𝑎𝑡𝑒 = 1 + 𝑁𝑜𝑚𝑖𝑛𝑎𝑙 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑅𝑎𝑡𝑒

1 + 𝐼𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛 𝑅𝑎𝑡𝑒

𝑃 = 𝑃𝑉(𝐶𝑜𝑢𝑝𝑜𝑛 𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠) + 𝑃𝑉(𝐹𝑎𝑐𝑒 𝑉𝑎𝑙𝑢𝑒)

𝑃T = U 𝐷𝑖𝑣+

(1 + 𝑟)+

𝑃T = 𝐷𝑖𝑣- (𝑟 − 𝑔)

𝑔 = 𝑅𝑂𝐸 × 𝑃𝑙𝑜𝑤𝑏𝑎𝑐𝑘 𝑅𝑎𝑡𝑖𝑜

𝜎^ = _𝑤` a𝜎`

a + 𝑤b a𝜎b

a + 2𝑤`𝑤b𝜌`b𝜎`𝜎b

𝛽e = 𝜌e,=𝜎e 𝜎=

= 𝑐𝑜𝑣(𝑟e,𝑟=)

𝜎=a

𝑟 = 𝑟f + 𝛽(𝑟= − 𝑟f)

𝑊𝐴𝐶𝐶 = 𝐷 𝑉 (1 − 𝑇i)𝑟j +

𝑃 𝑉 𝑟 +

𝐸 𝑉 𝑟k

𝐷𝑂𝐿 = % 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑝𝑟𝑜𝑓𝑖𝑡𝑠 % 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑠𝑎𝑙𝑒𝑠

= 1 + (𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠)/(𝑝𝑟𝑜𝑓𝑖𝑡𝑠)

𝑉q = 𝑉r + 𝑃𝑉 𝑡𝑎𝑥 𝑠ℎ𝑖𝑒𝑙𝑑𝑠 − 𝑃𝑉 𝑐𝑜𝑠𝑡𝑠 𝑜𝑓 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑑𝑖𝑠𝑡𝑟𝑒𝑠𝑠

𝑉q = 𝑉s + 𝑇i𝐷

𝑟k = 𝑟t + j k (1 − 𝑇i)(𝑟t − 𝑟j)