Financial Formula Sheet 1. Compounding and Discounting A. Compounding factor (future value of an interest factor r% for time t): B. Discount factor (present value of an interest factor r% for time t): C. Future annuity factor (future value of an annuity factor for r% for n periods): D. Present value annuity factor (present value of an annuity factor for r% for n periods): E. Net Present Value (NPV) of a project: F. Value of the firm: G. Dividend discount model for the share price (S 0 ): H. Real interest rate: I. Spot or zero-coupon rates (Z i ) derived from the par yield curve: 2. Expected Value 3. Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) A. CAPM: B. Capital structure effect on firm beta ( ): C. APT: 4. Currency Relationships A. Interest rate parity: B. Purchasing power parity: C. Expectations theory: D. International Fisher effect: 5. Statistical Measures A. Mean ( ): B. Standard deviation ( ): C. Kurtosis (K): D. Skewness (S): E. Covariance ( ab ): F. Correlation coefficient (ρ ab ): 6. Portfolio Model A. Portfolio expected return ρ p B. Portfolio risk ρ p for 2-asset portfolio: C. Portfolio risk ρ p for m-asset portfolio: D. Minimum variance portfolio weights for 2-asset portfolio: 7. Credit Assessment Models A. DuPont Model: B. Altman's Z-score model (USA): C. Taffler–Tisshaw's Z-score model (UK): . Financial Formula Sheet 1. Compounding and Discounting A. Compounding factor (future