kp = Annual dividend ÷ Net proceeds from the sale of preferred stock

kr = ks

ks = (Expected dividend ÷ Market price per share) + Dividend growth rate

kn = (Expected dividend ÷ Net proceeds from the sale of new common stock)
+ Dividend growth rate
kd = [Annual Interest + [(Par value – Net proceeds from the sale of debt) ÷ # of
years to maturity]] ÷ [(Net proceeds from the sale of debt + Par value) ÷ 2]

WACC = rD(1 – Tc)(D ÷ V) + rP(P ÷ V) + rE (E÷ V)

WACC = rD (D ÷ V) + rE (E ÷ V)

CAPM formula
E = market price per share X number of shares outstanding
D = market price per bond X number of bonds outstanding
V=D+E

Free Cash Flow = Profit after tax + depreciation − investment in fixed assets −
investment in working capital

Free Cash Flow= Operating Cash Flow − Capital Expenditures (CAPEX)

Stock standard deviation:
Standard Deviation = √(Σ((X - X̄)²) ÷ (n - 1))

Portfolio standard deviation:

Correlation Coefficient = Covariance ÷ (Standard Deviation of

Portfolio 1 x Standard Deviation of Portfolio 2)
Arithmetic mean = (r1 +r2 + r3 + ⋯ rn ) ÷ n
Sustainable growth rate= (retained earnings ÷ net income) x (net
income ÷ equity)

Cash receipt= Cash sales + Collection of A/R