This formula sheet includes formulas used in a law school corporate finance course.

Formulas relate to:

• Present/future value; present/future values of perpetuities including those that are delayed or at constant growth;

• annuities; bonds including present value, yield to maturity, duration, and modified duration;

• calculating stock prices and dividends with and without growth;

• business metrics such as ROE, present value of growth opportunities, dividend yield, etc.;

• calculating risk;

• portfolio analysis and theory including rate of return, variance, the Sharpe ratio, and the Capital Asset Pricing Model;

• beta of a security and the significance of various values of beta;

• the net present value rule; efficient market theory; the calculating the cost of capital including the weighted average cost of capital before and after tax;

• debt instruments and interest payments;

• the present value of a tax shield;

• and calculating the market value of a firm.