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Formulas you need to write : a. Risk Premiums for U.S. Government Bonds, Corporate Bonds, Bank Loans, Public Stock (Capital Asset Pricing Model), and Private Stock. b. Calculate the ownership percent...

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Formulas you need to write :
a. Risk Premiums for U.S. Government Bonds, Corporate Bonds, Bank Loans, Public Stock (Capital Asset Pricing Model), and Private Stock.
. Calculate the ownership percent for a new private stock issue.
c. Total Rate of Return formula.
d. Compounded Annualized Return formula (Geometric Average)
e. Future Value cash flow formula
f. Present Value cash flow formula
g. Net Present Value
h. Perpetuity formula
i. Growing perpetuity formula
j. Annuity formula
Answered Same Day Apr 28, 2021

Solution

Sumit answered on Apr 28 2021
151 Votes
a.
The formula for Risk premium is as under:
Expected rate of Return – Risk free rate of Return
.
The formula for Ownership Percentage is as under:
(Shares Owned / Total Shares) x 100
c.
The formula for total rate of return is as under:
((Cu
ent Value – Original Value) x 100) / Original Value
d.
The formula for Geometric Average is as under:
[(1+r1) x (1+r2) x … x (1+rn)]1/n - 1
R = Interest...
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