BU413 Study Guide - Midterm Guide: Fisher Equation, Dividend Tax, Digital Transmission Content Protection
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Pv = fv / (1 + k) n n o. Fv = pv (1 + k) n n o. Present value of perpetuity: pv = pmt/k. Pvifa pv = pmt [ 1 [ 1/(1 + k) ] ] n. Fvifa fv = pmt [ (1 + k) 1] n n. Pmtx{[(1 + k) 1] / k} (1 + k) n. K = (cf cf ) / cf. 0 n = number of periods if more than 1 per year; k/n k = rate of return, opportunity cost cap. Cf cash flow beg year, cf end year. Effect on credit = credit avail / 0. 07. Gud, enh div x 1. 45, dividend tax credit where end div are dividends eligible for enhanced div tax credit. Capital gains g = s > acb where acb = adjusted cost base. Apr: = m *km where m = # periods. After-tax cost of debt k = k (1-t) i b.
