final exam formula sheet

final exam formula sheet - 0 = N ∑ CF t t = 0(1 IRR t...

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Final Exam formula sheet N Bond Value: ∑ INT + M i = 1 (1 +r d ) t (1+r d ) N Market Risk Premium: RP m = r m - r RF Security Market Line: r i = r RF + (r m - r RF )b n Constant Growth Model: P o = D 1 r s – g Return on Preferred Stock: r ps = D ps V ps Weighted Average Cost of Capital: WACC = w d r d (1-T) + w p r p + w c r c Bond Yield Plus risk premium: cost common equity = bond yield + risk premium (4%) Net Present Value: NPV = N CF t t = 0 (1 +r) t Internal Rate of Return (IRR):
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Unformatted text preview: 0 = N ∑ CF t t = 0 (1 +IRR) t Payback period = number of years prior + unrecovered cost at start of the year to full recovery cash flow during full recovery year Break-even: Q BE = F P – V Net working capital = current assets – (payables + accruals) Cash conversion cycle = inventory conversion + average collection – payables deferral period period period...
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