Formulas For Exam 1-summer

Formulas for Exam I Current Ratio = Current Assets/Current Liabilities Quick Ratio = Current Assets - Inventories/Current Liabilities Inventory Turnover = Sales/Inventories Days Sales Outstanding = Receivables/(Annual Sales/360) Fixed Asset Turnover = Sales/Net Fixed Asset Total Asset Turnover = Sales/Total Assets Total Debt to Total Assets = Total Debt/Total Assets Time-Interest-Earned = Earnings Before Interest and Taxes/Interest Profit Margin on Sales = Net Income Available to Common Stockholders/Sales Return on Total Assets = Net Income Available to Common Stockholders/Total Assets Return on Common Equity = Net Income Available to Common Stockholders/Common Equity Price/Earnings = Price Per Share/Earnings per Share Earnings Per Share = Net Income/Number of Common Stock Shares Outstanding Price/Cash Flow = Price Per Share/Cash Flow per Share Cash Flow Per Share = (Net Income + Depreciation)/Number of Common Stock Shares Outstanding Price/Book = Market Price Per Share/Book Value per Share Book Value Per Share = Common Equity/Number of Common Stock Shares Outstanding Return on Equity = (Net Income/Sales) X (Sales/Total Assets) X (Total Assets/Common Equity)

n

kˆ = P1 k 1 + P2 k 2 + ... + Pn k n = ∑ Pi k i i =1

n

σ 2 = (k 1 − kˆ) 2 P1 + ... + (k n − kˆ) 2 Pn = ∑ (k i − kˆ) 2 Pi i =1

σ= σ k=

2

k 1 + k 2 + ... + k n n

Estimated σ (or S)

=

(k 1 − k) 2 + (k 2 − k) 2 + ... + (k n − k) 2 n −1

σ ˆ CV = k n

b p = w 1 b1 + w 2 b 2 + ... + w n b n = ∑ w i b i i =1

k i = k RF + (k M − k RF )b i FVn = PV (1 + i )n = PV(FVIF i, n) PV =

FV (1 + i) n

= FV(PVIF i, n)

FVA = PMT(FVIFA i, n)

PVA = PMT(PVIFA i, n) Back to FI 393 Home Page