BWFM5013 CORPORATE FINANCE

FIRST SEMESTER 2018/2019 SESSION

MATRIC NO.: _____________________

APPENDIX 1
LIST OF FORMULAS

Current Assets Current assets−Inventory

Current ratio= Quick ratio=
Current liabilities Current Liabilities

Cost of good sold 365

Inventory turnover = Da y ' s sales∈inventory=
Inventory Inventory turnover

Credit sales 365

Receivables turnover= Da y ' s sales∈Receivables=
Accounts receivable Receivables turnover

Cost of good sold 365

Payable turnover= Payables periods=
Accounts payable payables turnover
Sales Sales
NWC turnover= ¿ assets turnover= assests ¿
NWC Net ¿

Sales Total liabilities

Total assets turnover= Total debt ratio=
Total assets Total assests

Total debt Debt

Debt /equity ratio= Financial leverage multiplier=1+
Total equity Equity

Total assets EBIT

Financial leverage multiplier= Time interest earned ratio=
Total equity Interest

EBIT + Depreciation Net profit after tax

Cash coverage ratio= Profit margin=
Interest Sales

Net profit after tax Net profit after tax

Return On Assets( ROA )= Return On Equity ( ROE)=
Total assets Total Equity

Net profit after tax Sales Assets Price per share

ROE= x x Price/ Earning ratio=
Sales Assets Equity Earning Per Share( EPS)

Net profit after tax Market value per share

EPS= Market ¿ book ratio=
Shares outstanding Book value per share

ROA x b ROE x b
InternalGrowth Rate (IGR)= Sustainable Growth Rate (SGR )=
1−ROA x b 1−ROE x b

i
 BWFM5013 CORPORATE FINANCE
FIRST SEMESTER 2018/2019 SESSION
MATRIC NO.: _____________________

FV
FV =PV (1+i )
n PV =
( 1+ i )n
FV =PV (FVIFi , n)
PV =FV (PVIFi , n)

(1+ i)n−1
FVA=PMT [ i ]
FVA =PMT ( FVIFA i , n)

PVA=PMT [ 1−
]
( 1+i)n
i
PVA=PMT (PVIFA i ,n)

PP quoted rate m
PV =
i
EAR= 1+
m( −1 )
n n
ŕ . =∑ r j P j
j=1
σ= √∑
j =1
.
P j (r ¿ ¿ j−ŕ . )2. ¿

n
σ
CV = Beta portfolio =∑ w j β j
ŕ . j=1

Interest 1 i m
APR= X
Principal time
APY = 1+ ( ) m
−1

r j=R f + β j (r m −Rf ) Total cost= ( Q2 ) CC +( QT ) F

2 T (F )
EOQ=
√ CC

ii