Formula Sheet 1 so far?

[gsauls4]

Curious to know what people think are the “must-haves” for formula sheet 1 thus far in their studying. If I had to pick a couple major ones at this point, I’d go with…
WACC = [Rd x (1-t)(debt/assets)] + [Re x (equity/assets)]
Gordon Growth Model: Stock Value P = D / k - g (where D = dividend per share 1yr from now, k = required rate of return for equity investor, and g = growth rate of dividends (in perpetuity)
and
CAPM (Capital Asset Pricing Model): expected return of risk asset = risk-free rate + beta of security * (expected market return - risk free rate)
What are some others that you find yourself using constantly or different variations that branch out into the material?

 

[Would You Look]

If you’ve gone through the equity and FRA books and that’s all you have for “must know” formulas… consider this a practice test.

 

[gsauls4]

I was just trying to get the conversation started with the most important ones…obviously there are a hundred more.

 

[Harrogath]

Just try yourself to discriminate what formulas can come to the exam, it is part of the learning experience. For the exam you must learn ALL formulas, because no one knows what can be present that day.