Formulas Flashcards
1
Q
PV of an Annuity
A
PV = A * (1 – 1 / ( 1 + r )n) / r
2
Q
FV of an Annuity
A
FV = A * ( ( 1 + r ) n – 1 ) / r
3
Q
PV of Perpetuity
A
PV = P * 1 / r
4
Q
VF
A
Value of the Firm
5
Q
VS
A
Value of Equity
6
Q
VB
A
Value of Debt
7
Q
RS
A
Required Rate on Equity
8
Q
RB
A
Required Rate on Debt
9
Q
WACC
A
Weighted Average Cost of Capital
10
Q
CFF
A
Cash Flow before Interest
11
Q
CFS
A
Cash Flow to Shareholders (CF after interest)
12
Q
CFB
A
Cash Flow to Debtholders
13
Q
Formula Value of the Firm
A
VF = CFF / WACC
14
Q
Formula Value of Equity
A
VS = CFS / RS
15
Q
Formula Value of Debt
A
VB = CFB / RB