Finance Made Easy

• TIME VALUE OF MONEY
  • Simple Interest A=p*i*n
  • Add Interest to given amount A
  • Future Value fv=pv*(1+r)^t
  • Present Value fv=pv*(1+r)^t
  • Compounded Interest fv=p*e^(r*t)
  • Future Value fv=pv*e^(r*t)
  • Present Value fv=pv*e^(r*t)
  • Future Value of Ordinary Annuity
  • Present Value of Ordinary Annuity
  • Future Value of Annuity Due
  • Present Value of Annuity Due
  • Present Value of Growing Annuity
  • Net Present Value : Even Cash Flow
  • Net Present Value : Uneven Cash Flow
  • Internal Rate of Return (IRR)
  • • Effective Interest Rate (Yield)
    • Real Interest Rate
    • Inflation Rate
    • Present Value of PerpetuityModified Internal Rate of Return (MIRR)
      RATIOS
      • PE Ratio
      • Current Ratio = CA / CL
      • Quick Ratio = (CA-INV) / CL
      • Average Collection Period = AR / CS
      • AR Turnover = Sales / AR
      • Inventory Turnover = Cogs / Inventory
      • Total Asset Turnover = Sales / Total Assets
      • Fixed Asset Turnover = Sales / Fixed Assets
      • OI-ROI = OI / Assets
      • Debt Ratio = Total Debt / Total Assets
      • Return on Assets = Net Income / Total Assets
      • Return on Equity = Net Income / Equity
      • Operating Margin
      • Times Interest Earned = EBIT / Interest Expense
      • Net Margin Ratio
      • Gross Margin Ratio
      • Leverage Multiplier
      • 3 Step Dupond Return on Equity
      • Dupond Formula: Return on Equity
      • Acid Test Ratio

      COST OF CAPITAL

      • Weighted Cost of Capital
      • Capital Asset Pricing Model
      • Gordon Growth Model V = D / (k-g)
      • Build Up Method
      • After Tax Cost of Debt = k*(1-t)

      CAPITAL BUDGETING

      • Tax Effect = (MV-BV)*Tax Rate
      • Book Value = Cost – Accum. Depreciation
      • Inventory Turnover = COGS / Inventory
      • Working Capital = Current Assets – Current Liabilities
      • Asset Turnover = Sales / Average Total Assets
      • Operating Profit Margin = Operating Income / Sales Revenue
      • Return on Asset = Operating Income / Sales Revenue
      • Return on Investment
      • Return on Equity
      • Free Cash Flow
      • Cost Based Pricing
      • Break Even
      • EBIT
      • Read: Value a Company (Replacement Cost)
      • Read: Value a Company (Discounted Cash Flow)
      • Straight Line Depreciation
      • Payback Period
      • Discounted Payback Period

      FINANCIAL FORECASTING

      • DuPond Analysis ROE= Net Income*Asset Turnover*Multiplier
      • Dividend Payout Ratio = DIV / NI
      • Retention Ratio = 1- DIV / NI
      • Sustainable Growth Rate = ROE * (1-b)
      • Read: Percent of Sales Method

      RATES

   

LOANS

• Amortized Loan Payment R=Pi/(1-(1+i)^-n
• Loan Solver
• Amortization Schedule
• Deferred Loan Payment Amortization Schedule

BONDS

• Read About Bonds
• Bond Price
• Current Yield Y = C / P
• Yield to Maturity (YTM) Zero-Coupon
• Accrued Interest
• Coupon Payment
• Coupon Rate
• Interest Yield
• Approximate Yield to Maturity
• Bond Duration – Macaulay Method

STOCKS & EQUITY

• About Stocks/Equity
• Value of Preferred Stock V = D / i
• Gordon Growth Model V = D / (k-g)

ECONOMICAL COMPUTATIONS

• Marginal Profit
• Marginal Revenue
• Break Even Point R=C
• Continuous Income Stream
• Consumer Surplus
• Producer Surplus
• Cobb-Douglas Prod.
• Gini Coefficient

ECONOMICAL COMPUTATIONS

• Differentials
• Logistic Differential Equation
• Simplex Algorithm
• Average Tax Rate
• Marginal Tax Rate
• Price Index
• Real GDP – Expenditure Approach
• Real GDP – Income Approach
• GDP Deflator: Nominal GDP -> Real GDP
• Compute any Rate [%] : Labor
• Nominal & Real Interest Rate
• Unemployment Rate

BUSINESS FINANCE

• Moving Average
• Simple Exponential Smoothing
• Exponential Smoothing/Forecasting (Seed)
• Portfolio Return
• Portfolio Risk

REGRESSION & FORECASTING

• Find Regression Line y=mx+b
• Find Regression Line y=mx+b Step by Step
• Find Regression Line y=a+bx
• Read: All about Linear Regression
• Read: Correlation is not Causation!
• Find Median-Median Line y=mx+b
• Find Quadratic Regression y=ax^2+bx+c
• Find Cubic Regression y=ax^3+bx^2+cx+d
• Quartic Regression y=ax^4+bx^3+cx^2+dx+e
• Find Power Regression y=a*b^x
• Find Exponential Regression y=a*x^b
• Find Logarithmic Regression y=a+b*ln(x)
• Find Sinusoidal Regression y=a*sin(bx+c)+d
• Logistic Regression y=c*e^(bx)/(e^(bx)+a)

HELP & ABOUT

• Help & Use of Keys
• What to Input
• About us