FIN 300 Study Guide - Final Guide: Externality, Standard Deviation, Valuation Using Multiples
Document Summary
Tvm for valuing bonds: calculator instructions, f2: compound interest, fv = face value, ytm as an apr, set c/y = 2, ytm as an ear set c/y = 1, coupon bonds. I% = ytm: fv = face value, p/y = # of payment in a year, c/y = # of times compounded in a year. Canada 9. 75 jun 1/21 167. 09 1. 91: this translates as follows: It is a government of canada bond: the coupon rate is 9. 75, the maturity date is june 1, 2021, the price is ,670. 90, the ytm is 1. 91% (expressed as an apr) Dividend growth models: constant dividend (no growth, the firm will pay a fixed dividend forever, this is used to value preferred stock, calculator, n = 99999. I% = (r-g) *100/(1+g: n = 99999, pmt = last dividend calculated, fv = 0 because perpetuity, p/y = c/y = 1, compute the current pv of the stock, using the results from step 1 and 2, calculator.
