Assets = Liabilities + Equity

Assets = Liabilities + Equity + Revenues - Expenses

Assets = Liabilities + Equity + Revenues - Expenses + Gains - Losses
Ending Assets = Ending Liabilities + Ending Owner's Equity
Ending Owner's Equity = Beginning Owner's Equity + Investment by Owner + Net Income
Ending Owner's Equity  = Beginning Owner's Equity + Investment by Owner+ Revenues - Expenses + Gains -Losses
Ending Assets  = Ending Liabilities + Ending Owner's Equity
            = Ending Liabilities + Beginning Owner's Equity + Investment by Owner + Net Income
= Ending Liabilities + Beginning Owner's Equity + Investment by Owner + Revenues -Expenses + Gains
- Losses

If Investment by Owner = 0, Gains = 0,  Losses = 0,  then

Ending Assets = Ending Liabilities + Beginning Owner's Equity + Revenues - Expenses

Ending Assets = Ending Liabilities + Ending Owner's Equity
Assets = Liabilities + Owner's Equity 

Beginning RE + Net income (loss) – dividends = Ending RE

Net Income = Total Revenues – Total Expenses
Common Stock Valuation

1. CURRENT PRICE X RATE OF RETURN = DIVIDEND PER SHARE

2. CURRENT PRICE OF THE SHARE = DIVIDEND PER SHARE

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RATE OF RETURN

3. CURRENT PRICE OF THE SHARE = CURRENT DIVIDEND PER SHARE X ( 1+ GROWTH RATE)
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REQUIRED RATE RETURN- GROWTH RATE

PREFERRED STOCK VALUATION

VALUE OF SHARE = PAR VALUE OF PREFERRED STOCK X DIVIDEND RATE

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REQUIRED RATE OF RETURN

COST OF CAPITAL

COST OF NEW EQUITY = DIVIDEND FOR NEXT PERIOD

-------------------------------- + DIVIDEND GROWTH RATE
ISSUE PRICE OF A SHARE OF STOCK X ( 1- RATIO OF FLOTATION COST TO THE ISSUE PRICE)

DIVIDEND GROWTH RATE = RETENTION RATIO × RETURN ON EQUITY

COST OF PREFERED STOCK or EQUITY = CASH DIVIDENED (Always in PAR Value)

--------------------
MARKET PRICE

CASH DIVIDENED = PAR VALUE X DIVIDEND RATE

COST OF LONG-TERM DEBT = EFFECTIVE RATE X ( 1.00 - MARGINAL TAX RATE )

PAYBACK PERIOD = INITIAL INVESTMENT
------------------------
NET CASH FLOW PER PERIOD

ACCOUNTING RATE OF RETURN = AVERAGE ACCOUNTING PROFIT

----------------------------
AVERAGE INVESTMENT

AVERAGE ACCOUNTING PROFIT = EXPECTED ANNUAL CASH INFLOW- ANNUAL DEPRECIATION

ANNUAL DEPRECIATION = (INITIAL INVESTMENT − SCRAP VALUE)

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USEFUL LIFE IN YEARS