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Finance

rename
Updated 2007-02-13 08:25

Summary

Finincial info.

Companies

Type of Companyliability
hostile takeovergain control of shares
s corporationno double tax, 75% american, c corporation
transaction costbid-ask difference/ broker cost
memorize

Basic Finance Equations

Question Answer
RoI or RoANI / Total Assests
ACPAR/(Credit Sales/365)
memorize

Interest

Type of Interestformula
discount interest free1(1/r)
NPVpv = pv(benefits)-PV(costs) / use discount rate
Arbritagetaking advantage of price difference
Bondprice of bond / discount rate
expected return of a risky investementexpected gain/ intial cost
memorize

Time

Type offormula
Rule 1can only compare prices at the same time
Rule 2multiply by (1+r) to get wat the value will be in the future
Rule 3divide by (1+r) to get PV of future cash flow
FVPV * (1+r)^n
PVc/(1+r)^n
FV of annuityAnuity -1
Loan PaymentC=P/(1/r)(1-(1/(1+r)^n))
BondCost/(1+r)
EAREffective annual rate (all interest earned in a year)
APRAnnual Payement Rates
real interest(r-i)/(1+i)
after tax interestr(1-t)
EVA growingCn-rI
EVA downwardCn-rI(n-1)
memorize

Time

Type offormula
Rule 1can only compare prices at the same time
Rule 2multiply by (1+r) to get wat the value will be in the future
Rule 3divide by (1+r) to get PV of future cash flow
FVPV * (1+r)^n
PVc/(1+r)^n
FV of annuityAnuity -1
Loan PaymentC=P/(1/r)(1-(1/(1+r)^n))
BondCost/(1+r)
EAREffective annual rate (all interest earned in a year)
APRAnnual Payement Rates
real interest(r-i)/(1+i)
after tax interestr(1-t)
EVA growingCn-rI
EVA downwardCn-rI(n-1)
Same Resource projectnpv/ resources consumed
memorize

Bonds

Question Answer
Coupon Paymentcoupon rate * FV / # of payments in a year
YTMannuity + FV/(1+y)^n
memorize