Formulas Flashcards by Fleur Menue

Q

PV of an Annuity

A

PV = A * (1 – 1 / ( 1 + r )n) / r

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

FV of an Annuity

A

FV = A * ( ( 1 + r ) n – 1 ) / r

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

PV of Perpetuity

A

PV = P * 1 / r

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

VF

A

Value of the Firm

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

VS

A

Value of Equity

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

VB

A

Value of Debt

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

RS

A

Required Rate on Equity

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

RB

A

Required Rate on Debt

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

WACC

A

Weighted Average Cost of Capital

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

CFF

A

Cash Flow before Interest

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

CFS

A

Cash Flow to Shareholders (CF after interest)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

CFB

A

Cash Flow to Debtholders

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Formula Value of the Firm

A

VF = CFF / WACC

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Formula Value of Equity

A

VS = CFS / RS

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Formula Value of Debt

A

VB = CFB / RB

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Formula WACC

Study These Flashcards

A

( VS / VF ) * RS + (VB / VF) * RB

Q

Payback Period

Study These Flashcards

A

Initial Investment / Annual Cash Flow

Q

Accounting Rate of Return

Study These Flashcards

A

Average Annual profit / Average Investment