# Formula Sheet Finance

Document Sample

```					Formula Sheet
Finance 3300
(Note: This sheet does not list many formulas that are important for the exam)

Current Assets                                      Current Assets − Inventory
1. Current ratio =                                     2. Quick ratio =
Current Liabilities                                     Current Liabilities

Accounts Receivable                                COGS
3. Avg. Collection Period =                         4. Inventory turnover ratio =
Sales / 360                                   Inventory

Sales                                      Total Debt
5. Total Asset Turnover=                               6. Debt ratio =
TotalAssets                                  Total Assets

Total Assets                                                    EBIT
7. Equity Multiplier =                                8. Times interest earned =
Equity                                                 Interest Expense

Net Income                               Net Income
9. Net profit margin =                                 10. ROA =
Sales                                  Total Assets

Net Income                                                             GrossProfit
11. ROE =                                              12. Gross profit margin=
Equity                                                                 Sales

1                              ⎛ Net Income ⎞ ⎛ Sales ⎞ ⎛ Assets ⎞
13. Equity multiplier =                               14. ROE= ⎜            ⎟×⎜       ⎟×⎜
⎜        ⎟
⎟
1 − debt ratio                       ⎝ Sales ⎠ ⎝ Assets ⎠ ⎝ Equity ⎠

Accounts Payable
15. Payable period =
COGS / 360

Discount percent
16. Effective cost of not taking the discount =
Extra days if not take the discount / 360

Inventory
17. Inventory Conversion period =
COGS / 360
Net income available to shareholders
18. Earnings per share (EPS) =
No. of common shares outstanding

Current Market Price
19. P/E ratio =
Earnings Per Share

Total dividend
20. Dividends per share =
No. of common shares outstanding

21. rnominal =    rreal + i + (rreal × i )

22. OFN = Change in total asset - change in spontaneo us liabilitie s - change in retained earnings

m
23. Effective rate of return = ⎜ 1 +
⎛        r⎞
⎟ −1
⎝        m⎠

24. Effective rate of return (under continuous compounding) =           er −1

25. Required rate of return under CAPM = r f + β rm − r f  (        )
D1
26. Stock price (at t=0) = r − g
e

```
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