Formula Sheet

FVt
PV  (1)
(1  r )t

FVt  PV (1  r )t (2)

PMT
PV  (3)
r
1 1 
PVA  PMT   t 
(4)
 r r (1  r ) 

 (1  r )t  1 
FVA  PMT   (5)
 r 
m
 r 
EAR (or EFF%)  1  Nom   1 (6)
 m 

ri  rRF  (rM  rRF )  i (7)

r̂   Pi  ri (8)

 2   (ri  rˆ) 2  Pi (9)

rˆP   w  r i (10)
n
 P   wi   i (11)
i 1
r
CV  (12)
r̂
 i ,m
i  (13)
 2m

 AB  A, B (14)
 A B

 P2  wA2 A2  wB2 B2  2 wA wB A, B (15)

 A, B  (rAi  rˆA )(rBi  rˆB ) Pi (16)

1
 Formula Sheet
D1
P0  common stock (17)
(rs  g )

INT
Current yield  (18)
Bond price

WACC  wd rd (1  T )  wps rps  ws rs (19)

D t  1 ( Pt  1  Pt ) (20)
rt  1  
Pt Pt
n

 Cash Inflow (1  r )
t
n t

PV of Cash Outflows  t 0
(21)
(1  MIRR ) n

t
CFt
NPV   (22)
t 0 (1  r )t

t
INT M
VB    (23)
t 1 (1  rd ) (1  rd )t
t

D ps
rps  (24)
Pps

DIV1
rs  g (25)
P0

FCF1
VC  (26)
WACC  g

t
CFt
NPV   0 (27)
t 0 (1  IRR)t