Chapter 6 Flashcards
1
Q
Market risk
A
Systematic
Non disversifiable
2
Q
Unique risk
A
Unsystem
Disversifiable
3
Q
Giảm rủi ro
A
Đa dạng hóa đầu tư
4
Q
Expected return
A
ER= Rf + beta. risk premium
5
Q
CAPM
A
R = Rf + beta. (Rm - Rf)
6
Q
Rm - Rf
A
Market risk premium
7
Q
Rd
A
Cost of Debt = YTM on bonds = pretax of debt
8
Q
Re
A
Cost of Equity
= Rf + beta.(Rm - Rf)
9
Q
Cost of capital
A
= Rd. D/V + Re.E/V
10
Q
risk-free dept
A
Rd = Rf
11
Q
WACC
A
= (1 - Tax).Rd.(D/V) + Re.(E/V)
12
Q
After tax of debt
A
(1 - T).Rd
13
Q
NPV
A
C0 + C1/(1+r) + C2/(1+r)^2 + C3/(1+r)^3 + …
14
Q
YTM
A
[Coupon + (F - P)/n (years)] / [(F + P)/2)]
