Formular Sheet

# Formular Sheet - D (1 + g ) P + g R E = R f + " E ( R...

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Formula Sheet Time Value of Money PV ( A n ) = C r 1 " 1 (1 + r ) n # \$ % ( = C * PVIFA r , n PV ( A " ) = C r PV ( C n ) = C n (1 + r ) n FV ( A n ) = C r (1 + r ) n " 1 [ ] PV ( A n , g ) = C r " g 1 " (1 + g ) n (1 + r ) n # \$ % ( PV ( A ) , g ) = C r " g

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Valuation Dividend Payout Ratio = Dividends ÷ Net Income Earnings Retention Ratio = b = 1 – Dividend Payout Ratio = 1- DIV/NI ROA = Net Income Total Assets Equity Common Income Net ROE = Price/Earnings Ratio = Market Price per Share EPS P 0 = D 1 (1 + r ) 1 + D 2 (1 + r ) 2 + D 3 (1 + r ) 3 + ........ P 0 = D 1 (1 + r ) 1 + D 2 (1 + r ) 2 + D 3 (1 + r ) t + ..... + D n (1 + r ) n + D n + 1 r " g * 1 (1 + r ) n # \$ % % ( ( n n g D D g P D r g r D P r D P ) 1 ( * 0 0 1 1 0 0 + = + = ! = =
Statistics Review E(R p ) = W A *E(R A ) + W B *E(R B ) ! AB = P i i = 1 n " ( E ( R Ai ) # R A )( E ( R Bi ) # R B ) ( ) NPV = CF t (1 + r ) t t = 1 n " 0 ) ( ) 1 ( 0 1 = + + ! = CF IRR CF n t t t PI = CF t (1 + r ) t t = 1 n " CF 0 E ( R ) = Pr i R i i = 1 n " # 2 = Pr i [ R i \$ E ( R )] 2 i = 1 n " = 2 = Pr i [ R i \$ E ( R )] 2 i = 1 n "

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" p 2 = w 2 A 2 + (1 # w ) 2 B 2 + 2 w (1 # w ) A B AB = Cov ( R A , R B ) # A \$# B = A B A B p 2 = w 2 A 2 + (1 # w ) 2 B 2 + 2 w (1 # w ) A B \$ AB CAPM i = im m 2 = im i m E ( R i ) = R f + i ( R m # R f ) Slope SML = E ( R j ) " R f j 1 ..... * 1 = + + + = ! = N B A j n j j p W W W W
Capital Structure WACC = W E *R E + W P *R P + W D *R D *(1-t c ) W E + W P + W D = 1 WACC T Int EBIT V R T EBIT V l u u ) 1 )( ( ) 1 ( ! ! = ! = M & M R E = D 1 P 0 + g =

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Unformatted text preview: D (1 + g ) P + g R E = R f + " E ( R M # R f ) WACC = E V \$ % & ’ ( ) R E + P V \$ % & ’ ( ) R P + D V \$ % & ’ ( ) R D (1 # t c ) V = E + P + D ! " # \$ % & ’ + = ’ + = + = = E D T E D R R R R D T V V V V U L D A A E c U L U L ) 1 ( 1 / * ) ( * ( S = EBIT " r d D ( ) (1 " T ) r e V = E + D P = V " D n V l = V u + 1 + (1 " T c )(1 " T s ) (1 " T d ) # \$ % & ’ ( ) D...
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## This note was uploaded on 01/20/2010 for the course ECON econ134 taught by Professor M. during the Fall '09 term at UCSB.

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Formular Sheet - D (1 + g ) P + g R E = R f + " E ( R...

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