Other
Finance 1 formula sheet
- Course
- Institution
Pearson Education - corporate finance. Jonathan Berk & Peter DeMarzo. Finance 1, formulas.
[Show more]
6 reviews
By: kturnquest37 • 1 year ago
By: janavdbergen • 3 year ago
By: svanolm1 • 3 year ago
By: jideatiku • 6 year ago
By: henrikwalldnpersson • 6 year ago
By: nicholasseankelly • 7 year ago
Seller
Follow
CardinM
Reviews received
Content preview
Formules Financiering 1Chapter 2: Introduction to Financial statement analysis
Balance Sheet Ratios
- Assets = Liabilities + Stockholders Equity (SE = Book value of equity)
- Book value of the Equity =Book value of the assets – book value of liabilities
- Market value of the Equity = Market price per share x number of shares
- Net working capital = current assets – current liabilities
- Enterprise Value = market value of equity + debt – cash
- Market capitalization = market price per share number of outstanding shares
- Markt-to-book ratio =
- Debt-Equity value =
- Current Ratio =
- Quick Ratio =
- Earnings per Share (EPS) =
- Investment space = = = Growth Rate !
Income Statement Ratios
- EBITDA = earnings before interest, taxes, depreciation and amortization
- Retained Earnings = net income – dividends
- Operating margin =
- Net Profit Margin =
- Accounts Receivable days =
- Return on Equity =
- Return on Assets =
- Price-earnings ratio = =
Chapter 3: Arbitrage and financial decision making
- NPV = PV (benefits) – PV (Costs)
- Value Additivity = Price (C) = Price (A + B) = Price (A) + Price (B)
- Discount factor:
,Chapter 4: The Time Value of Money
- Time value of money =(Money in the future) – (money today) r = Interest rate
C = Cash flow
- NPV of an investment opportunity = PV(benefits - costs) FVn = Future value on
date n
- Future value of a cash flow = C x (1+r)n PV = Present value
Cn = Cash flow at date n
- Present value of a cash flow = N = date of the last cash
flow in a stream of cash
flows
- Present value of a cash flow stream = ∑ NPV = Net Present Value
P = initial principal or
- Future value of a cash flow stream with a PV =FVn = PV x (1+r)n deposit
FV = future value
- Loan Payment = C = g = Growth rate
( ( ))
Perpetuity
- Present Value =
Growing Perpetuity / declining perpetuity (?)
- PV =
Annuity
- Present Value = C x ( )
- Future Value = C x
Growing Annuity
- PV = C x ( ( ) )
Chapter 5: Interest Rates
- Equivalent n-period discount rate = (1+r)n – 1
- Interest rate per compounding period =
- Growth in Purchasing power: 1 + rr = =
- The real interest rate = rr = (= r – i)
- Converting APR to EAR = 1 + EAR = ( )
- PV of a risk-free cahs flow =
- PV f a csh flow stream using a term structure of discount rates = ∑
- After tax interest rate = r-(π x r) = r( 1 – π)
, FCFt = Free
Chapter 6 Investment Decision Rules
cash flow in
- Profitability index = =( )
year t
Chapter 7 Fundamentals of Capital budgeting
- Income tax = EBIT x
- Unlevered Net Income = (Revenues – Costs – Depreciation) x (1 - )
- Net Working Capital = (Current assets – Current Liabilities) = (Cash + Inventory + Receivables
– Payables)
- Free Cash Flow = (Revenues – Costs – Depreciation) x (1 - ) +Depreciation – CapEx – NWC
= (Revenues – costs) x (1 - ) – CapEx – NWC + x depreciation
- Gain on sale = Sale price – Book value
- Book Value = Purchase price – accumulated depreciation
- After-tax cash flow from asset sale = Sale price – ( - gain on sale)
- PV(FCFt) =
- FCF:NI + Depr – Cap Exp + Incr. NWC
Chapter 8 Bond Cash Flows, Prices and Yields
- CPN =
- P= YTMn = ( ) - 1
- P = CPN x ( )+
- Clean Price = Cash Price – accrued interest
- Accrued Interest = coupon amount x
- Price of a coupon bond = P = PV = + +…+
HC +
∑
- Gewogen gemiddelde effectieve looptijd = (CFt = Interest + Aflossing)
∑
(=rente-elasticiteit!)
- Berekenen van de Implied Forward Interest Rate n-1fn = -1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CardinM. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.23. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
56326 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now