L2 Formula thread - No explanations required.

CFA Level II
#1

FCFF = CFO + Int(1-t) - FCinv

#2

FCFE = FCFF - Int (1-T) + Net borrowings

#3

Ra^2= 1- [(n-1/n-k-1) * (1-r^2)]

#4

EV = Market value of Debt + Market value of common stock + preferred equity - cash and investment

#5

CF Accurals Ratio: (NI-CFI-CFO) / (NOAend + NOAbeg)/2

#6

Justified P/B: ROE-g / r-g

#7

Gordon Growth Return on Equity = Forecasted next year dividend yield + long term index growth rate - long term riskfree rate

#8

nyccfa2010 Wrote: ------------------------------------------------------- > Justified P/B: ROE-R / r-g Dude Jusified P/B = (ROE - g)/(r-g)

#9

justified P/S: [NPM * DPR * (1-g)]/ (r-g)

#10

Single Stage RI V0= B0 + [(ROE-r) x B0] / (r-g)

#11

kevincwang Wrote: ------------------------------------------------------- > nyccfa2010 Wrote: > -------------------------------------------------- > ----- > > Justified P/B: ROE-R / r-g > > > Dude Jusified P/B = (ROE - g)/(r-g) both are correct. CFAI uses this one.

#12

cfaboston28 Wrote: ------------------------------------------------------- > kevincwang Wrote: > -------------------------------------------------- > ----- > > nyccfa2010 Wrote: > > > -------------------------------------------------- > > > ----- > > > Justified P/B: ROE-R / r-g > > > > > > Dude Jusified P/B = (ROE - g)/(r-g) > > > both are correct. CFAI uses this one. What that big R stands for? now I am thinking capitalization ratio…

#13

"Dude Jusified P/B = (ROE - g)/(r-g) " I’ve never seen this, nor does it seem to make sense conceptually. Of course, I could just be sabotaging people in order to increase my odds, so take that into account.

#14

great, GGM and its relatives: P=D1/(r-g) P=FCFF1/(WACC-g) P=FCFE1/(r-g) P=NOI/(r-g)=NOI/cr … P=B0+PVGO P=B0+PVRI=B0+(ROE-r)*B0/(r-g)

#15

justified P/B = (roe -g)/(r-g) … no question about it

#16

(ROE - g)/(r-g) no explantations per topic, use that for just p/b

#17

Sorry, I meant that I’ve never seen the “(ROE - r)” numerator equation.

#18

nyccfa2010 Wrote: ------------------------------------------------------- > (ROE - g)/(r-g) > > no explantations per topic, use that for just p/b Got where you were coming from there is another formula: justified P/B = 1 + (ROE-r)/(r-g)

#19

skillionaire Wrote: ------------------------------------------------------- > "Dude Jusified P/B = (ROE - g)/(r-g) " > > I’ve never seen this, nor does it seem to make > sense conceptually. > > Of course, I could just be sabotaging people in > order to increase my odds, so take that into > account. strategy wont work well, considering I am literally going to blow this test out of the water, low 90’s is my guess. yes I am the badass of finance.

#20

Might not work on you.