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Get Full Access to UTA - FINA 3313 - Class Notes - Week 3
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UTA / Finance / FINA 3313 / How does one calculate a discount rate?

# How does one calculate a discount rate? Description

##### Description: notes from test 1 till now
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## How do i calculate a discount rate? SOL

Test #2 material Face Value = \$100

ch.6

date: 2-22

RV -

CT

intv Pricen Current yield a

yeld price

maturity ↑

coupon !

*

6-11 N=30 12=30-60

FV=1000 Yield to maturity = I/4 x 2 Coupon = 8%.

## What does a zero coupon bond mean? pmnt = 6:08) (1000F3 = 40 . 4.48 3083 X=9.97% a. Payment bond = 900 +/

- X 2 = 1 - 1000 +/- /y=9m/2=4 = 18% = 1100 +/- Ily=3.5916844 2 =

## How do you calculate book value of equity? If you want to learn more check out Why did the provisional government fall?

TM=17-18%

12. Zero Coupon bonds 9. PV=300 +/

FV = 1000 N=30 Yy=4.091.

. N=10

Yy=10 |PV=\$385.54

Study sur

lavs

b. Pio = 69.277

= \$15.66

9. P3

(2017) S = this 0001 = 10 If you want to learn more check out What were the development during the second industrial revolution?

7 5 = VUON) OEN

1.01 = I-With '79- vodno E ENIC

& 1124.09

\$897.26

08 En

It'bsols

\$944.65

8=N

\$1033.87

N=4

/L=h/I

091966 l=h/

(9)

huub

08=2/(0001) (20-) - fuld

0001 - 17 .18 = vodnes bl

*

Study Spur Don't forget about the age old question of What is the difference between spatial neglect and blindness?

date: 2-24

Ch. 7

• Ch 7 slide 5: bottom part is wrong

ei P/E ration is 103.500

__ growth = 4% 9. D. - Delita) = ((17.04) = \$1-04

D2 = D. (1+g)2 = (1)(1.04)- = 91.0816 Do = Do (Itg)3 = (1) (1.04)2 = \$1.124866 We also discuss several other topics like What distinguishes an incoporated mismatch from mismatch and mutation?

b. discount rate = K = 12%

D.

1.040

= 5 12-04)

silt0.4=104

C. V3 = Vo (tg)

=(13) (1.04)3 = (13)(1-124864) = \$14.621 If you want to learn more check out What does small intestine do to complete digestion?

A

14. Do = \$13

(just paid means Dol

g = 5%

a. k=157.

b.k = 12

%.

- K - 9

(3) (1.08) = (-15-05)

3.15 = 110

-

3 .15 12 -05 3.15

-07

=\$31-501

+\$45

Equity = \$200mil

2/29/16

22. Cost of new Firm = Book value If you want to learn more check out How much consumers are willing to pay?

ROE = 24%

Ko 15%.

D = 50% (reinvested)

mve

BVE

DIV

MVE

Do(1+g

a

Div = (1-6) (NI) ROE - NYE

ROE KE = NI NI = (-24) (00m1) = 848 mil DIV=(.5) (48 mill= 24 mil g=D* ROE

(.5)(24) = 12%

(24) (14.12)

=

- \$896 mil (15 .12) = BVE = 200 = 14.48

ME

b. ROE = 10%

g = (-5) (10) = 5%. NI = (-10) (200) = \$200 mil DIV = \$ 10mil

VE - (10) (17.05 = \$105 mil Buve - 200 =1.5250)

15

.05

Study SA

dos ApS

grow don't

it grow

* 29. historial / Past future

- ROE = 20%

D = 30% EPS=\$3

k=12%

D = EPS (1-D) = (3) (+7)= \$2.10

a. g = D #ROE = (-3) (20) = 6%. b. Vo = Rig = 2.2006 = 435

paying it all off VNG = D = EPS

C. PyGo = VG-VNG = 35-25= \$10

ING = No outh VNG = e = 12 = \$25

D. PLE =

= 11.7

e. P/ENG - 25 = 8.3

f P, Go A P/En

1

Ch.8

Slide 8-15. in cal:

C01 - 25000

FOI = (how many times in a row you gonna use) = CO2= 25000

CO3 = 475000

CPT , NPV

I=7

CPT Slide 9-21 Co=-375000 ... hit (CPT, TRP] 2 times

75000

8500

- 1000ot/

-o

o

K=12%

K=127.

IRR = 20.61%

NPV = 82029.09

4 20. PT NPV MPV

Us PI = NINVICE

K= 221.

a.co 2000

210D+/

1200

NPV=345-579145 345.

579 145

PLE

Z100 = 1.164 561

아가기

2100

CF2

. NPV = \$241.306

241-306 P1 = 2100

= 1.1149081 higher Pl is better so @ is better

Studs

Study Shop

30. Econo-cool!

- 150+/

-15077

-1507

-1507

-150+/

300+/

100

100

100

50ot/

100

4

i

Nf

wl

6

7

وسلم

I=21 Econo: N=5 Lux : N=8

لابيل

Solve set Solve

for NPV NPV to "PU" =\$738.89

for Pmt - EAC = 252.53

-872.5575 \$234.

21

this has lower

Cost

p268. MIRR

out flows inflows

solve for PV of

- PV of EPV = "PV" EFV = "FV" :

N=5 solve for I = MIRR K = 20%

125

125

175

o

175

-400

210t/

160. 751029

4 ist from end __210

252

PV = 370.751025+/ I - 20.38% good. R>K

216

259-20 FV=937.20

this might be on

tho 33. old: \$5,000/yr only 2more years new :

CF, = 2,000+/- F0,= 10

CF 920,000+/-

Ñ=10

Cali

- solve for NPV -set NPV as PV

NE

I : - Solve for Pmt (this is EAC)

ak:47.

N=10

replace

:

T=4

it is

NPV:4-36,221.79156

PMT=EAC = \$ 4465.82 cheaper to replace

b. k=12%

N=10 I=12

I Don't replace

WPV: 31,300.44606 PMT= EAC =5539.68

SAPERS

du saprIS

lets use 2ours

Ch.a Istraight 8. REV

Prod.cost Fixed DEPR EBIT EBIT(1-T)

+ DEPR OCF

line depreciation = MACRS 120,000

Cost = \$imil 40,000 • 25 yrs for this problem 15,000 o look at pg 286 37,500

> 20yr maces (Property)= 3.75). 27,500 • T = -35.6. 17,875 - 37,500 55,375

sa

dep work

cost

- 2964

10. tax = 35%.

(c) K=12% AWC=1000 cost \$40,000+/

+AWC CF = 41000+/ Lot 4 3yr MACRS

NPV = \$7191.7786903.55 I save Scarp 10000

IRR = 21.76% Save \$20,000 in energy 2

Basis MALLS .3333

.4445

*1481

0741 REV 20,000

20,000 20,000 G SVA SV-tax DEPR 13,332

17,780 59924 tax- (sales-basis) T EBIT

2220 14076 - - (10,000 - 2964) 35 EBIT(1-T) 4339.20 1443 -

9149.40 - = 2462.60 + DEPR -13,3332

17780_ 5924 - SVAT = 2462.60 - OCF 17,666.20 19223- 15073.40 CF-7537.40 CF,

CF2 7537.40 Svat

22,610.80 AWC

CF3 1000 - AWC 72.610.an

1000 -

Studys pur

811L -

AS

SVAT = SV-tax = 1000 - 329.82 TAX = (-35) (542.40) = 329.82 CG = 942.40

| 09 LS - 227 = 5lsvg - 5 50

09-29 = (2201) (OLSO) = siste 259- (59.) (2201) AS

2001 = AS

good.

not

CF e

16

7 IR > K?

7.

26%.

IRR =

2095.96

Modal

920 -273

808-80 154.40

345.60

611.20

L'8 LS! - EndN ASO D

E

2 9b-sbal 26-912 1 26.9121 02 BLEI

07-01 Citta

SSEIS 100 og Ste 12-169 oz 169

- -251

0021 adapt E OSL ZL SZS ZL S25

- Sbl (1-1) 497

927- 28 1191 ZSIT

0261

9021 dbp. 2001 eosi cosi nesi OOST 951 raz OLSO - 2S11- 2S11 able - 28. 02 Satu

so

+/+QQOL on 3 0001 + 2209 =H % SE=1

1.91-57-1 99099 : mysbon ma '81

226.20 348

808-80 691.20

g

Awe = \$1000

Study Shape

BEG 24,000

* 20. END A/R 23.000 INU 12500 CA \$ 35, 500 CL 16500

DE

12,000 \$ 36,000

14,500

- 500

2000

a. AwC

= CA -CL = (-500) - (2000) = - \$ 2500

.

Study su

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