Finance Formula

In: Business and Management

Submitted By sloppyboy
Words 4580
Pages 19
Formulae
Final Examination

Financial Accounting and Financial Statement Analysis l Equity Valuation and Analysis l Corporate Finance l Economics

Table of Contents

1.

Financial Accounting and Financial Statement Analysis
1.1 Generally Accepted Accounting Principles: Assets, Liabilities and

1

Shareholders’ Equities ......................................................................................... 1
1.1.1 1.2.1 1.3.1 1.3.2 1.3.3 Assets: Recognition, Valuation and Classification....................................... 1 Earning per Share ......................................................................................... 1 Profitability Analysis ..................................................................................... 2 Risk Analysis ................................................................................................ 5 Break-Even Analysis .................................................................................... 6

1.2 Financial Reporting and Financial Statement Analysis ...................................... 1 1.3 Analytical tools for Assessing Profitability and Risk......................................... 2

2.

Equity Valuation and Analysis
2.1.1 2.1.2 2.1.3

7

2.1 Valuation Model of Common Stock .................................................................... 7
Dividend Discount Model............................................................................. 7 Free Cash Flow Model................................................................................. 8 Measures of Relative Value ......................................................................... 8

3.

Corporate Finance
3.1.1 3.1.2 3.2.1 3.2.2 3.3.1

9

3.1 Fundamentals of Corporate Finance ................................................................... 9
Discounted Cash…...

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