Formulas
| Future Value Factor | FVF = (1+r)^t |
| Present Value Factor | PVF = 1/FVF |
| Present Value Interest Factor | PVIFA(r,t) = (1-PVF)/r |
| Annuity Present Value | APV = dollars per period * PVIFA |
| Annuity Future Value Factor | AFVFA = (FVF-1)/r |
| Annuity Future Value | AFV = dollars per period * AFVFA |
| Annuity Due Future Value | ADFVA = Ordinary Annuity Value * (1+r) |
| Effective Annual Rate | EAR = [1+(quoted rate)/m]^m -1 (m = compounds per year) |
| Bond Value | BV = Present Value of Coupons*PVIFA + F/FVF (percent value of face amount) |
Earnings Per Share (EPS) = Net Income / total shares outstanding
Dividends Per Share = total Dividends / total shares outstanding
Average Tax Rate = Total taxes paid / total taxable income
Marginal Tax Rate = Amount of tax payable on the next dollar earned
Flat Tax Rate is the same percentage for entire income. with a flat tax, the
Average and Marginal tax rate are the same.
.15 ($50,000 - $0)
.25 ($75,000 - $50,000)
.34 ($100,000 - $75,000)
.39 ($200,000 - $100,000)
Marginal tax rate pays percentages as the money steps up, flat rate pays the
bracket percentage on the entire income.
Cash Flow