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    Formulas FM

    Uploaded by

    Lakshmi Prameela

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Formulas FM

    Uploaded by

    Lakshmi Prameela
    44 views2 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    44 views2 pages

    Formulas FM

    Uploaded by

    Lakshmi Prameela

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Cost of Debt k d I +(MV −P 0)/n

    kd =
    0.6 P0 +0.4 MV
    Cost of Preference Shares k p D+(MV −P0 )/n
    kp=
    0.6 P0 +0.4 MV
    Cost of Retained Earnings/Equity, k e D
    k e = 1 + g - DDM Model
    P0
    k e = r f + β (r m - r f ) – CAPM
    D1
    ke = + g – Floatation cost
    P 0 (1−F)
    Weighted Average Cost of Capital (WACC) WACC = w e k e + w p k p+ w d k d (1- t)
    BEP in units Total Fixed Cost/Contribution margin per
    unit
    BEP in INR Total Fixed Cost/ Contribution margin ratio
    Contribution margin per unit Selling price per unit– variable cost per unit
    Contribution margin ratio Contribution margin per unit/ Selling price
    per unit
    Target Sales in units Total Fixed Cost + Desired Profit
    Contribution margin per unit
    Target Sales in INR Total Fixed Cost + Desired Profit
    Contribution margin ratio
    Operating Leverage = %ge change in EBIT / %ge change in sales
    Total Contribution∈INR
    =
    Earningsbefore Interest∧Taxes (EBIT )
    Financial Leverage EBIT
    Earning Before Tax(EBT )
    Total Leverage =DOL X DFL
    Contribution
    =
    EBT
    Expected Return (With probability) n
    R= ∑( Ri )( P i )
    i=1

    √∑
    Risk (with probability) n
    2
    = (R i−R) X ( Pi)
    i=1
    Portfolio return n
    R p = ∑ ( W i )( R i )
    i=1
    Portfolio risk 2 2 2 2 2
    σ P= W 1 σ 1 + W 2 σ 2 + 2W 1 W 2 ρ12 σ 1 σ 2
    Future Value of a Single Amount F V n = PV(1+r )n
    Present Value of a Single Amount PV = FV n /(1+r )
    n

    Shorter Compounding Period F V n = PV(1+r /m)mXn


    Shorter Discounting Period PV =¿ FV n/(1+r /m)mXn

    [ ]
    Effective Interest Rate r
    n ×m
    1+ −1
    m

    [ ]
    Future Value of An Annuity regular n
    F VA n = CF (1+r ) −1
    r
    [ ]
    Present Value of An Annuity regular n
    (1+ r) −1
    PVA n = C F
    r (1+r )n

    [ ]
    Future Value of An Annuity Due n
    F VA d = CF (1+r ) −1 ∗(1+r )
    r

    [ ]
    Present Value of An Annuity Due (1+ r)n −1
    PVA d = C F ∗(1+ r)
    r (1+r )n
    Present Value of a Perpetuity = CF/r
    Present Value of Growing perpetuity Annuity
    r−g

    [ ]
    Present Value of an Uneven Series n
    CF t
    V n= ∑ t
    t =1 (1+r )

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