Formula Sheet

FV=PV*(1+r)^t FV=PV/(1+r)^t n=ln(FV/PV)/ln(1+r) i= [(FV/PV)^(1/t)]-1

[ ]
1

[ ]
1 1-
1− (1+r )t FV
(1+r )t Bond Value = C +
PV =C r (1+r)t
r

FV =C
r [
(1+r)t −1
] P0 =
D 0 (1+g) D1
=
PV=C/r R-g R-g

[ ( )]
t
C (1+g )
PV = 1−
r−g (1+r)

C WACC = WERE + WDRD (1-TC) + WPRP

PV =
r−g
n
E( R )=∑ pi Ri
[ ]
m
APR
EAR = 1+ −1 i=1
m

n
σ 2 =∑ pi ( R i−E (R ))2

[ ]
1 i=1
m
APR = m (1 + EAR ) -1

D 0 (1+g) D1 m
P0 = = E( R P )= ∑ w j E( R j )
R-g R-g
j=1

E (R A )−Rf E( R M −R f )
=
(1 + R) = (1 + r)(1 + h), where
βA βM

R E=R f +β E (E ( R M )−R f ) WACC = wERE + wDRD(1-TC)+wpRp