Answer 8 Q’s below. ALL OF THEM REQUIRE MATH COMPUTATIONS NEED SOMEONE WHO CAN DO THIS Formulas attached along with problemsFIN305FormulasFinal20203.docxAco

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)