View
- Term
- Definition
- Both Sides
Study
- All (13)
Shortcut Show
Next
Prev
Flip
BUS-F 300: EXAM 2
LT liabilities=
|
liabilities-current liabilities
|
LT Capital=
|
shareholder's equity-LT liabilities
total assets-current liabilities
|
How to calculate cash flow
|
earnings before depreciation & taxes
-depreciation
-taxes
+depreciation
|
Forward Premium=
|
((F rate-spot rate)/spot rate)*(12/#months)*100
|
Calculating standard deviation & expected value (D-)
|
sum(probabilities*cash flows) (D-)
cash flows-(D-)
(cash flows-(D-))^2
(cash flows-(D-))^2*P
sum and take the square root= standard deviation
|
PV= |
FV/(1+r)^n
|
If coupon rate>market interest rates
|
attractive
priced at a premium
cost more than $1000
|
If coupon rate<market interest rate
|
less attractive
priced at a discount
price lower than $1000
|
Beta>1
|
more volatile than the market
|
Beta<1
|
Less volatile than the market
|
Beta=1
|
equally as volatile as the market
|
Total return on investment=
|
yield
|
Cost of capital
|
thinking of a required return
|