Formules Financiering 1
Chapter 2: Introduction to Financial statement analysis
Balance Sheet Ratios
- Assets = Liabilities + Stockholders Equity (SE = Book value of equity)
- Book value of the Equity =Book value of the assets – book value of liabilities
- Market value of the Equity = Market price per share x number of shares
- Net working capital = current assets – current liabilities
- Enterprise Value = market value of equity + debt – cash
- Market capitalization = market price per share number of outstanding shares
- Markt-to-book ratio =
- Debt-Equity value =
- Current Ratio =
- Quick Ratio =
- Earnings per Share (EPS) =
- Investment space = = = Growth Rate !
Income Statement Ratios
- EBITDA = earnings before interest, taxes, depreciation and amortization
- Retained Earnings = net income – dividends
- Operating margin =
- Net Profit Margin =
- Accounts Receivable days =
- Return on Equity =
- Return on Assets =
- Price-earnings ratio = =
Chapter 3: Arbitrage and financial decision making
- NPV = PV (benefits) – PV (Costs)
- Value Additivity = Price (C) = Price (A + B) = Price (A) + Price (B)
- Discount factor:
,Chapter 4: The Time Value of Money
- Time value of money =(Money in the future) – (money today) r = Interest rate
C = Cash flow
- NPV of an investment opportunity = PV(benefits - costs) FVn = Future value on
date n
- Future value of a cash flow = C x (1+r)n PV = Present value
Cn = Cash flow at date n
- Present value of a cash flow = N = date of the last cash
flow in a stream of cash
flows
- Present value of a cash flow stream = ∑ NPV = Net Present Value
P = initial principal or
- Future value of a cash flow stream with a PV =FVn = PV x (1+r)n deposit
FV = future value
- Loan Payment = C = g = Growth rate
( ( ))
Perpetuity
- Present Value =
Growing Perpetuity / declining perpetuity (?)
- PV =
Annuity
- Present Value = C x ( )
- Future Value = C x
Growing Annuity
- PV = C x ( ( ) )
Chapter 5: Interest Rates
- Equivalent n-period discount rate = (1+r)n – 1
- Interest rate per compounding period =
- Growth in Purchasing power: 1 + rr = =
- The real interest rate = rr = (= r – i)
- Converting APR to EAR = 1 + EAR = ( )
- PV of a risk-free cahs flow =
- PV f a csh flow stream using a term structure of discount rates = ∑
- After tax interest rate = r-(π x r) = r( 1 – π)
, FCFt = Free
Chapter 6 Investment Decision Rules
cash flow in
- Profitability index = =( )
year t
Chapter 7 Fundamentals of Capital budgeting
- Income tax = EBIT x
- Unlevered Net Income = (Revenues – Costs – Depreciation) x (1 - )
- Net Working Capital = (Current assets – Current Liabilities) = (Cash + Inventory + Receivables
– Payables)
- Free Cash Flow = (Revenues – Costs – Depreciation) x (1 - ) +Depreciation – CapEx – NWC
= (Revenues – costs) x (1 - ) – CapEx – NWC + x depreciation
- Gain on sale = Sale price – Book value
- Book Value = Purchase price – accumulated depreciation
- After-tax cash flow from asset sale = Sale price – ( - gain on sale)
- PV(FCFt) =
- FCF:NI + Depr – Cap Exp + Incr. NWC
Chapter 8 Bond Cash Flows, Prices and Yields
- CPN =
- P= YTMn = ( ) - 1
- P = CPN x ( )+
- Clean Price = Cash Price – accrued interest
- Accrued Interest = coupon amount x
- Price of a coupon bond = P = PV = + +…+
HC +
∑
- Gewogen gemiddelde effectieve looptijd = (CFt = Interest + Aflossing)
∑
(=rente-elasticiteit!)
- Berekenen van de Implied Forward Interest Rate n-1fn = -1
Chapter 2: Introduction to Financial statement analysis
Balance Sheet Ratios
- Assets = Liabilities + Stockholders Equity (SE = Book value of equity)
- Book value of the Equity =Book value of the assets – book value of liabilities
- Market value of the Equity = Market price per share x number of shares
- Net working capital = current assets – current liabilities
- Enterprise Value = market value of equity + debt – cash
- Market capitalization = market price per share number of outstanding shares
- Markt-to-book ratio =
- Debt-Equity value =
- Current Ratio =
- Quick Ratio =
- Earnings per Share (EPS) =
- Investment space = = = Growth Rate !
Income Statement Ratios
- EBITDA = earnings before interest, taxes, depreciation and amortization
- Retained Earnings = net income – dividends
- Operating margin =
- Net Profit Margin =
- Accounts Receivable days =
- Return on Equity =
- Return on Assets =
- Price-earnings ratio = =
Chapter 3: Arbitrage and financial decision making
- NPV = PV (benefits) – PV (Costs)
- Value Additivity = Price (C) = Price (A + B) = Price (A) + Price (B)
- Discount factor:
,Chapter 4: The Time Value of Money
- Time value of money =(Money in the future) – (money today) r = Interest rate
C = Cash flow
- NPV of an investment opportunity = PV(benefits - costs) FVn = Future value on
date n
- Future value of a cash flow = C x (1+r)n PV = Present value
Cn = Cash flow at date n
- Present value of a cash flow = N = date of the last cash
flow in a stream of cash
flows
- Present value of a cash flow stream = ∑ NPV = Net Present Value
P = initial principal or
- Future value of a cash flow stream with a PV =FVn = PV x (1+r)n deposit
FV = future value
- Loan Payment = C = g = Growth rate
( ( ))
Perpetuity
- Present Value =
Growing Perpetuity / declining perpetuity (?)
- PV =
Annuity
- Present Value = C x ( )
- Future Value = C x
Growing Annuity
- PV = C x ( ( ) )
Chapter 5: Interest Rates
- Equivalent n-period discount rate = (1+r)n – 1
- Interest rate per compounding period =
- Growth in Purchasing power: 1 + rr = =
- The real interest rate = rr = (= r – i)
- Converting APR to EAR = 1 + EAR = ( )
- PV of a risk-free cahs flow =
- PV f a csh flow stream using a term structure of discount rates = ∑
- After tax interest rate = r-(π x r) = r( 1 – π)
, FCFt = Free
Chapter 6 Investment Decision Rules
cash flow in
- Profitability index = =( )
year t
Chapter 7 Fundamentals of Capital budgeting
- Income tax = EBIT x
- Unlevered Net Income = (Revenues – Costs – Depreciation) x (1 - )
- Net Working Capital = (Current assets – Current Liabilities) = (Cash + Inventory + Receivables
– Payables)
- Free Cash Flow = (Revenues – Costs – Depreciation) x (1 - ) +Depreciation – CapEx – NWC
= (Revenues – costs) x (1 - ) – CapEx – NWC + x depreciation
- Gain on sale = Sale price – Book value
- Book Value = Purchase price – accumulated depreciation
- After-tax cash flow from asset sale = Sale price – ( - gain on sale)
- PV(FCFt) =
- FCF:NI + Depr – Cap Exp + Incr. NWC
Chapter 8 Bond Cash Flows, Prices and Yields
- CPN =
- P= YTMn = ( ) - 1
- P = CPN x ( )+
- Clean Price = Cash Price – accrued interest
- Accrued Interest = coupon amount x
- Price of a coupon bond = P = PV = + +…+
HC +
∑
- Gewogen gemiddelde effectieve looptijd = (CFt = Interest + Aflossing)
∑
(=rente-elasticiteit!)
- Berekenen van de Implied Forward Interest Rate n-1fn = -1
