You are on page 1of 2

BUSINESS FINANCE

FORMULAE SHEET

1. FUTURE VALUE OF A SINGLE SUM

2. PRESENT VALUE OF A SINGLE SUM

3. FUTURE VALUE OF AN OR ANNUITY

4. PRESENT VALUE OF AN OR ANNUITY

5. PRESENT VALUE OF PERPETUITY

6. EFFECTIVE RATE OF INTEREST

7. VALUE OF DEBT (Bond)

8. - CONSTANT DIVIDENDS MODEL

9. - CONSTANT GROWTH IN DIVIDENDS MODEL

10. DIVIDEND YIELD

11. CAPITAL GAINS YIELD

12. ARR = ACCOUNTING RATE OF RETURN

13. NET PRESENT VALUE

14. PRICE-EARNINGS RATIO


15. INDIVIDUAL ASSET

- EXPECTED RETURN

16. - STANDARD DEVIATION (IE. RISK)

17. SECURITY MARKET LINE EQUATION [CAPM]

18. - COVARIANCE

19. - BETA

20 - PORTFOLIO EXPECTED RETURN

21. - PORTFOLIO VARIANCE (2 ASSET)

p = w11 + w22 + w33 +........... wnn - PORTFOLIO BETA

23. CAPITAL MARKET LINE EQUATION

24. REWARD TO RISK RATIO

25. WEIGHTED AVERAGE COST OF CAPITAL

26. COST OF PREFERENCE SHARES

27. COST OF ORDINARY SHARES

You might also like