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BFIN 620 Final Exam Formula Sheet NEW

# BFIN 620 Final Exam Formula Sheet NEW - Ratio Cost Variable...

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Business Finance 620 Final Exam Formula Sheet Basic PV – FV Formula: K r) (1 PV FV + = PV of Annuity: + K r) (1 1 r C 1 (r = required return) PV of Perpetuity: r C (r = required return) PV of Growing Perpetuity: g r C 1 (r = required return; g = perpetuity growth rate) Expected Return (CAPM): ) r (r beta r r f m f + = Internal Rate of Return (IRR): ( ) ( ) ( ) 0 = + + + + + + + K t 2 2 1 0 IRR 1 C IRR 1 C IRR 1 C C " Net Present Value (NPV): ( ) ( ) ( ) K t 2 2 1 0 R 1 C R 1 C R 1 C C + + + + + + + " Payback Period: Flow Cash Tax - After Annual Cost Project Initial Accounting Break-Even Revenue:
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Unformatted text preview: Ratio Cost Variable 1 on Depreciati Costs Fixed − + Degree of Operating Leverage: Profits Costs Fixed 1 Sales in Change % Profits in Change % + = Weighted Average Cost of Capital: preferred common c debt r Value Equity Preferred r Value Equity Common ] ) T (1 r [ Value Debt ⎥ ⎦ ⎤ ⎢ ⎣ ⎡ + ⎥ ⎦ ⎤ ⎢ ⎣ ⎡ + − ⎥ ⎦ ⎤ ⎢ ⎣ ⎡ where r preferred = preferred dividend / market price....
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