FORMULAE SHEET

C  1   1 
P0   1  n
 FV   n
E( RP )  wA E( RA )  wB E ( RB )
i  1  i    1  i  

σ P2  (wAσ A )2  (wB σ B )2  2(wB σ B )(wAσ A )ρAB
Dt
P0  
t 1 1  RE 
t
E ( RP )  R f  [ E ( RM )  R f ]  M   P
D1
P0 
RE Ri  R f  βi  ( R M  R f )
D1
P0  i 
Cov( Ri , RM )
RE  g

2
M

n n
 p   wi  i
OCFt
NPV    I0
t 1 1  R 
t
i 1

NPV D ps Dividend
NPVI  PI  R ps = =
I0 Pps Current Price

EAV  1 
NPV   1  n D ps
 1  R  
R Dividend
R ps = =
NP0 Net Price
Q = (FC + D) / (P – v)
D1
RE = g
Q = (FC + OCF) / (P – v) P0

%∆OCF = DOL x %∆Q D1

RE = g
NP0
DOL = 1 + FC / OCF
WACC 
E
RE   PS Rps   D Rd 1  T 
Dt 1 Pt 1  Pt  V V V
Return  
Pt Pt
Rd,at = Rd (1 - T)
AHPR  n 1  r1  1  r2  ...  1  rn   1 Vlevered = Vunlevered + (Debt*t)
 r  r  ...  rn 
Average return (arithmetic)   1 2  RE  RU  ( RU  Rd )( D / E )(1  t )
 N 
N
r   ri Pi BEP = EBIT/Total assets
i 1
ROI = (NI + Interest)/Total Financing


r1  r   r2  r 
2 2
 ...  rn  r 
2

 Target   Total 
N    
Dividends  Net Income   equity    capital 
N  ratio   budget 
  
  r  r  P
i 1
i
2
i