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CF Cheatsheet

This document is a comprehensive formula sheet for corporate finance covering key concepts such as time value of money, valuation, leverage, capital budgeting, cost of capital, and more. Each formula is presented in a ready-to-use format, making it suitable for exam preparation. It also includes references for further reading and a note on the availability of a printable cheat sheet.
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0% found this document useful (0 votes)
22 views5 pages

CF Cheatsheet

This document is a comprehensive formula sheet for corporate finance covering key concepts such as time value of money, valuation, leverage, capital budgeting, cost of capital, and more. Each formula is presented in a ready-to-use format, making it suitable for exam preparation. It also includes references for further reading and a note on the availability of a printable cheat sheet.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

this is all my concept give me all the formulae

Here is a consolidated, exam-focused formula sheet covering all concepts in the shared review
deck: time value, valuation, leverage, capital budgeting, cost of capital, long/short-term finance
(incl. MPBF), leasing, dividends and buyback metrics, valuation approaches (earnings, DCF,
relative), VC, and restructuring. Each formula is in ready-to-use form.

Time value of money


Future value: [1]

Present value: [1]

Ordinary annuity PV: [1]

Ordinary annuity FV: [1]

Annuity due PV: [1]

Growing annuity PV: [2]

Perpetuity PV: ; Growing perpetuity: [2]

Valuation of debt and equity


Bond price: [2]

Current yield: [2]

Yield to maturity: solve price equation for [2]

Equity Gordon model: [3]

Multi-stage DDM: [3]

Earnings capitalization: (constant perpetuity) [2]

Leverage and PBIT–EPS


EPS: [2]

Financial leverage (D/E): [4]

Times interest earned: [4]

Operating leverage: [2]

Financial leverage: [2]


Combined leverage: [2]

ROI: ; ROE: [4]

Capital budgeting
NPV: [3]

IRR: solve [5]

Profitability index: [3]

Payback: years to recover initial outlay; Discounted payback uses discounted CFs [3]
MIRR: [6]

Equivalent annual annuity: [2]

Simulation note: risk reflected either in CFs or discount rate (not both) [3]

Capital structure and cost of capital


WACC: [7]

Cost of equity (CAPM): [3]

Cost of equity (DDM): [3]

Cost of preferred: [3]

Pre-tax cost of debt: ; After-tax: [2]

Beta: [2]

Unlever/lever beta: [2]

Long-term financing instruments


Convertible conversion price incentive: Premium/discount computed from market vs
conversion value: [2]

Effective annual rate: [2]

Lease financing
Lease payment (PMT): [2]

Implicit rate via IRR: solve IRR for lease cash flows [2]
NPV lease-vs-buy: compare after-tax lease payments vs debt-financed purchase CFs,
include tax shield and depreciation tax shield [2]
Working capital and short-term finance
Net working capital: [4]

Current ratio: ; Quick ratio: ; Cash ratio: [4]

Inventory turnover: ; Receivables turnover: [4]

DSO: ; DSI: ; DPO: ; CCC: [4]

Holding period return: ; EAR for short period t days:


[2]

Cost of trade credit: [2]

Bank discount yield: [2]

MPBF (Tandon/25% margin approach commonly used):


Working Capital Gap: [8]

Margin: [8]

MPBF: or simplified turnover method:


[9]

International finance basics


Forward rate with premium/discount (approx): (covered interest parity,
simplified) [2]
Bid-ask quote conversion: Use reciprocal to switch direct/indirect quotes; apply bid to sell
base, ask to buy base [2]

Dividends and buybacks


Dividend yield: [3]

Payout ratio: ; Retention: [4]

Sustainable growth: [4]

Total shareholder return (with buybacks):


[2]

Post-buyback EPS impact: new EPS using reduced shares outstanding; buyback yield:
[2]

Valuation approaches
Net assets method: Value = FMV(Assets) − Liabilities (incl. off-balance-sheet adjustments)
[2]

Relative valuation:
P/E: ; Implied price [4]

EV/EBITDA: [2]
Equity value: [4]

Earnings capitalization: or for FCFF perpetuity; special case


often seen as if tax/other adjustments ignored [2]
DCF (FCFF):
[10]

Terminal value (Gordon): [10]

FCFF: [10]

DCF to equity (FCFE):


Equity value: [10]

FCFE: [10]

Venture capital financing


Post-money valuation (VC method): [2]

Ownership required: or depending on


definition [2]
Exit value via multiple: [2]

Corporate restructuring metrics


Exchange ratio (merger): [2]

Accretion/dilution:
[2]

Wealth impact: Combined value minus pre-deal sum; synergy PV required ≥ premium
paid [2]
Post-merger P/E impact depends on mix of consideration and relative multiples [2]

Governance and ratios often tested


Asset = Liabilities + Equity [4]
Market-to-book: [4]

Enterprise value: [4]

ROIC: [4]

DuPont: [4]

If a printable one-pager is helpful, a compact cheat sheet can be shared in PDF/Markdown


format aligned to this syllabus. All formulas above map to the topics in the review and reflect
standard corporate finance references. [5] [6] [9] [8] [1] [10] [3] [4] [2]

1. https://www.studocu.com/en-ca/document/toronto-metropolitan-university/managerial-finance-i/corpor
ate-finance-and-formulas-and-cheat-sheet-finance-300/2921431
2. https://www.scribd.com/document/39114505/Corporate-Finance-Formulas
3. https://365financialanalyst.com/templates-and-models/corporate-finance-formulas-cfa-level-1/
4. https://www.studeersnel.nl/nl/document/rijksuniversiteit-groningen/asset-pricing-and-capital-budgetin
g/all-formulas-for-final-exam/15239324
5. https://www.investopedia.com/terms/i/irr.asp
6. https://www.volopay.com/in/blog/capital-budgeting-techniques/
7. https://www.investopedia.com/terms/w/wacc.asp
8. https://www.finline.in/resource/mpbf-method-for-working-capital-loan/
9. https://www.linkedin.com/pulse/turnover-method-mpbf-working-capital-cycle-connection-gattani-vy2t
f
10. https://corporatefinanceinstitute.com/resources/valuation/dcf-formula-guide/
11. https://www.scribd.com/document/595436725/Formula-Sheet-Corporate-Finance
12. http://larryschrenk.com/FIN360/FIN360-Misc/FIN 360 Exam 1 Review and Formula Sheet.doc
13. https://icmai.in/upload/AdvStudies/UPSC/1308_22_1.pdf
14. https://fortriskconsulting.com/mpbf/

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