Formulae Sheet

Portfolio risk | | Forward premium/discount (indirect quote) | | Forward premium/discount (direct quote) | | Times interest earned = EBIT/Interest | TATO = S / A | Expected value = Σ D x P | ROE = ROA / (1-D/A) | ROA = Net Income / A | Gearing = D / A | Avg. credit period = accounts receivable average daily credit sales | Total inventory cost= C (Q/2) + O(S/Q) | DOL = Sales - total VC . Sales - total VC – FC | DFL = EBIT . EBIT - I | EPS = earnings attributable to ordinary shareholders no. of ordinary shares | BE = FC P - VC | FV = PV x FVIF | Ke =( D1/P0 ) + g | PV = FV x PVIF | Kn = D1/(P0 – F) + g | FVA = A x FVIFA | Kj = Rf + β(Km – Rf) | PVA = A x PVIFA | Kd = Y(1 - T) | D1 = D0(1 + g) | Kp = Dp/(Pp – F) | P0 = D1/(Ke – g) | R = (M0 – S)/(N + 1) | Pb = PVA + PV | Pp = Dp/Kp | WACC = (Wd x Kd ) + (We x Ke) + (Wp x Kp) | | Effective rate with compensating balances= Interest x Days in year (360) . Principal – Compensating Balance in $ Days of loan outstanding | Effective rate on instalment loan= 2 x annual no. of payments x interest (total no. of payments + 1) x principal | [ Annual int. pay + principal pay. – bond price ]/ (0.6 Bond price +0.4 Principal pay)Y = No. of years to maturity | Cost of failing to = discount % . x 360 take a cash discount 100% - discount % final due date - discount period | RNF = A/S (ΔS) - L/S (ΔS) - PS2 (1 - D) | EOQ = √ 2SO C | No. of directors that can be elected = (shares owned – 1) x (total no. of directors to be elected + 1) total no. of shares outstanding