In pro forma analysis, often the interest expense is not consistent with the assumptions. For example, the traditional formula for calculating the internal growth rate (IGR) is not consistent with the assumption of no increase in debt. I derive a corrected formula for the IGR that is consistent...

Binomial pricing trees are often used to value options. However, binomial models can easily become very large and cumbersome. Multinomial option pricing trees can be constructed that produce results equivalent to binomial option pricing trees. The advantage of creating multinomial trees is that...