03 Jul Answer 8 Q’s below. ALL OF THEM REQUIRE MATH COMPUTATIONS NEED SOMEONE WHO CAN DO THIS Formulas attached along with problemsFIN305FormulasFinal20203.docxAco
Answer 8 Q's below.
ALL OF THEM REQUIRE MATH COMPUTATIONS
NEED SOMEONE WHO CAN DO THIS
Formulas attached along with problems
FV = PV (FVFk,n)
FVOA = PMT (FVFOAk,n)
PV = FV (PVFk,n)
PVOA = PMT (PVFOAk,n)
Bond Valuation:
V = (INT x PVFOA) + (M x PVF) Gallagher text, pg. 320, formula 12-3
OR
B = I(PVIFA r,n) + M(PVIFr,n)
Rate of Return – one year:
r = Pt – Pt-1 + C
Pt-1
CAPM:
K = Krf+β (Km- Krf)
Gallagher formula pg 156, formula 7-6 (moving beta, β, before parenthesis)
OR
r = Rf +β(rm – Rf)
NOTE: Krf is the risk free rate 90 day T-Bills) and is the same as “Rf”
Portfolio Beta
βp = (w1 x β1) + (w2 x β2) … (wj x βj)
Gordon Model for Stock Valuation:
P = D1/(rs – g)
