Formula sheet MT1 PDF

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Summary

Formula Sheet for Exams...

Description

Formula sheet Book value of assets = acquisition cost – accumulated depreciation Net Working Capital = Current Assets – Current Liabilities Market capitalization = price per share * shares outstanding Quick ratio (acid-test ratio) = (current assets – inventory)/current liabilities Gross profit = revenues (net sales) - cost of sales Retained Earnings = Net Income – Dividends Dividend payout ratio= dividend/net income

Excel functions: PV(rate,nper,pmt,fv) RATE(nper,pmt,pv,fv) PMT NPV(rate, value1,value2,…)

Tips: enter rate as decimal; PV or FV will show up as cash outflow (-) or inflow (+)

Period rate = APR/no. of compounding periods per year m

APR ö æ 1 + E A R = ç1 + ÷ m ø è (m = n u m b e r o f c o m p o u n d in g p e rio d s p e r y e a r) PV(perpetuity) = C / r

P V (g ro w in g p e rp e tu ity ) =

C r - g...