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Finance Formula Cheat Sheet , Cheat Sheet of Finance

New Orleans Baptist Theological Seminary (NOBTS)Finance

Useful cheat sheet with Finance formulas

Typology: Cheat Sheet

2019/2020

Uploaded on 10/09/2020

sergeybrin
sergeybrin 🇺🇸

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Finance Formulas, Page 1 of 3

1n
FV
PV r
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1n
FV PV r
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11n
A
PV CF r
r
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FV CF r
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CF
PV r
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s
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Div g
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APR
EAR m
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Finance Formula Sheet
pf3

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n

FV

PV

r

^1 

n FVPVr

n PVA CF (^) r

r

 1 ^1

n

A

r FV CF

r

p

CF

PV

r

0 ^1 

s s

Div g P r g

m APR EAR

m

n m r FV PV

m

    (^)     

n m

A

r

PV CF (^) m

r

m

  ^ 

n m

A

r

m FV CF

r

m

  (^)     ^        ^        

1

n FV r PV

Finance Formula Sheet

Expected return of a portfolio:    

1

n

p i i i

E r w E r

Variance of a 2-asset portfolio:

2 2 2 2 2

 p  w 1  1  w 2  2  2 w w 1 2  12

Variance of a 3-asset portfolio:

2 2 2 2 2 2 2

 p  w 1  1  w 2  2  w 3  3  2 w w 1 2  12  2 w w 1 3 1 3  2 w w 2 3  23

Correlation coefficient between series 1 and 2:

1, 1, 1 2

Covariance between time series x and y :

1 , 1

n

i i i x y

x x y y

n

Variance of asset x :

2

(^2 )

1

n

i i x

x x

n

Beta of security i = (^) , i i i m m

  , or

Beta of security i =

, 2

i m i m

 = covariance between returns of i and the market ( m ) ÷ variance of m

Expected return on equity (stock) = E r  S   rf   E r  m  rf 

, also known as the CAPM

or, alternatively:

1

0

S

D

E r g P

  = dividend yield plus expected growth

Net Income Return on Assets = Total Assets

Net Income ROE Shareholders' Equity

ROE = Profit Margin  Asset Turnover Equity Multiplier

ROE = ROA equity multiplier

Net Income Sales Total Assets ROE Sales Total Assets Shareholders' Equity

  