MBAZ603 Formula Sheet
PV =
FV
(1 + r)t
F V = P V (1 + r)t
g = (ROE) × (P lowbackratio)
r̂(expected − return) =
P Vannuity = C
P Vannuity−due = C
PV = C
+
r m
) −1
m
F Vannuity = C
(1 + r)
F
(1 + r)t
P0 =
Div1
r
Cov(Ri , Rm )
σ 2 (Rm )
or
ρim σi σm
2
σm
t !
r̂ = P1 r1 + P2 r2 + ... + Pn rn =
or
n
X
Pi ri
i=1
v
u n
√
uX
2
Standard deviation = σ = σ = t (ri − r̂)2 Pi
i=1
where
NPV
Investment
F V of total inf lows
(1 + M IRR)t
βi =
ρim σi
σm
CF AT = OCF = EBIT D(1 − t) + t(Depreciation)
or
i=1
P V of cash f lows
EAA =
,
annuity f actor
1+g
1+r
Div1
r−g
P V of outf lows =
βi =
OCF = CF AT = EBIT (1 − t) + Depreciation
n
X
σ2 =
(ri − r̂)2 Pi
1−
P rof itability Index =
βi =
n
A = B n ⇒ ln(A) = n ∗ Ln(B)
C1
C2
Ct
+
+ ... +
=0
(1 + IRR)1
(1 + IRR)2
(1 + IRR)t
i=1
C
=
r−g
P0 =
C2
Ct
C1
+
+ ... +
(1 + r)1
(1 + r)2
(1 + r)t
n
X
ri
D1
D2
D3
DH + PH
+
+
+ ... +
1
2
3
(1 + r)
(1 + r)
(1 + r)
(1 + r)H
C0 +
r̂ =
(1 + r)t − 1
r
P Vgrowing−annuity
P0 =
C1
r−g
Div1
+g
P0
(1 + rnominal ) = (1 + rreal )(1 + h)
N P V = C0 +
PV =
NI
E
ROE =
1
1
−
r
r(1 + r)t
1
1
−
r
r(1 + r)t
EAR = (1 +
r̂(expected − return) =
Div1
P1 − P0
+
P0
P0
1
1
−
r
r(1 + r)t
C1
r
PV =
annuity f actor =
1
1
1
−
r
r(1 + r)t
MBAZ603 Formula Sheet
r̂(portf olio) = x1 r1 + x2 r2 + ... + xn rn
2
σ(portf
olio) =
n X
n
X
β(portf olio) = x1 β1 + x2 β2 + ... + xn βn
V ariance(portf olio) = x21 σ12 + x22 σ22 + 2(x1 x2 ρ12 σ1 σ2 )
Xij σij
i=1 j=1
βp =
Cov(Rp , Rm )
σ 2 (Rm )
or
D
P
E
(rd (1 − t)) + rp + re
V
V
V
T otal assets turn over =
Inventory period =
W ACC = wd rd (1 − t) + wp rp + we re
sales
total assets
W C turnover =
inventory
(annual COGS/365)
Accounts payable period =
P rof it margin =
ρpm σp
σm
r = rf + βi (rm − rf )
σim = ρim σi σm
W ACC =
βp =
Accounts receivable period =
accounts payable
annual COGS/365
income
sales
re = ra +
sales
NWC
Inventory turnover =
accounts receivable
(annual sales/365)
COGS
inventory
D
(ra − rd )
E
Distribution = N I − [(target equity ratio) × (total capital budget)]
Accounts receivable = (daily sales) × (average collection period)
p=
P V (COST )
P V (REV )
Ef f ective annual rate =
s
Economic order size = Q =
(1 +
2 ∗ sales ∗ cost per order
carrying cost
2
discount
) extra
discounted price
365
day credit
−1
MBAZ603 Formula Sheet
ROE =
net income
equity
ROA =
af ter tax operating income
total assets
ROC =
af ter tax operating income
total capitalization
Af ter tax operating income = (1 − tax rate) ∗ interest expense + net income
T imes interest earned =
Cash coverage ratio =
Current ratio =
EBIT + depreciation
interest payments
current assets
current liabilities
cash + marketable securities + receivables
current liabilities
Quick ratio =
Cash ratio =
EBIT
interest payments
cash + marketable securities
current liabilities
M arket to book ratio =
market value of equity
book value of equity
EV A = af ter tax operating income − (cost of capital ∗ total capitalization)
FCF = EBIT (1-t) + Dep - New Cap Ex - Additional NWC
FCF = NI + Int - Int(t) + Dep - New Cap Ex - Additional NWC
re= ra + D/E (ra -rd)
re = ra + D/E x (1-T) x (ra - rd)
P = 100 -[(m/12) x d]
3