Financial Formulas and Valuation Topics

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Vocabulary flashcards reviewing essential finance formulas, including time value of money, annuities, bond valuation, yield, and stock valuation.

10 Terms

1
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Future Value

FV=PV(1+r)tFV = PV(1 + r)^t

2
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Present Value

PV=FV/(1+r)tPV = FV / (1 + r)^t

3
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PV Annuity

C[1−(1+r)−t]/rC[1 - (1 + r)^{-t}] / r

4
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FV Annuity

C[(1+r)t−1]/rC[(1 + r)^t - 1] / r

5
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Perpetuity

PV=C/rPV = C / r

6
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Bond Valuation

PV coupons + PV face value

7
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Current Yield

Annual coupon / Bond price

8
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EAR

(1+APR/m)m−1(1 + APR / m)^m - 1

9
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Stock Valuation

P0=D1/(R−g)P_0 = D_1 / (R - g)

10
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Required Return

R=D1/P0+gR = D_1 / P_0 + g