Finance cheat sheet[78].docx - Constant div grow Acc B.E =(FC Dep(p-v Cash B.E= FC(p-v Fin B.E=(FC OCF(p-v DOL= 1(FC/OCF Ignoring tax Avg nom risk

# Finance cheat sheet[78].docx - Constant div grow Acc B.E...

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Geo avg return ={[(1+R1)x(1+R2)+…(1+R)]^1/#of variables} -1 WACC = (E/V) x Re +(D/V) x Rd x(1-T) WACC= WACC = (Wcs x Rcs) + (Wd x Rd x (1 – T)) + (Wps x Rps) PV(CCATS) = [CdT/k+d x 1+0.5k/1+k]- [SdT/k+d x 1/(1+k)^n] SML formula Ri=Rf+ beta I (Rm – Rf) Re= Rf + betaE(Rm – Rf) Dividend growth model Re=(D1/P0)+ g Port variance w/correlations [(W1^2)(var1)]+[W2^2)(var2)]…+[2(W1)(W2)(stdev1)(stdev2)(corr1,2) Port beta = W1xbeta1 + W2x beta2+… Reward 2 risk =[E(Ri)-Rf]/beta i Portfolio Expec. Return = [W1xE(Ri)]+[W2xE(Ri)]… Asset expected return =(R1xP1)+(R2xP2)+…(RNxPN) Avg nom risk premium = avg nom return on asset – avg Risk free rate DOL = 1+(FC/OCF) Including tax OCF ={[(p-v)Q-FC]x(1-t)}+DT Ignoring tax OCF =(p-v)Q-FC Fin. B.E =(FC+OCF*)/(p-v) OCF= initial cost/(PVAF) Cash B.E = FC/(p-v) Acc B.E = (FC+Dep)/(p-v) Constant div. grow P t =D t+1 /(r-g) Inventory Turnover = COGS/Inv. Interval Measure = Current ass./ avg daily op costs EAC = PV costs / PV interest factor of annuity DFL = EBIT/EBIT - interest Days sales in inv. = 365/inv. Turn over Fixed Asset Turnover = Sales/ NFA Sustain grow rate Sustain grow rate
• Spring '14

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