Present and Future Value Interest Factors 



Statistics 

Risk and Return 

Stock Value 

Capital Budgeting 

Topics in Capital Budgeting 

Leverage 

Capital Structure 

r 
interest rate 
fv 
future value 
pv 
present value 
fvif 
future value interest factor 
pvif 
present value interest factor 
t 
number of years 
pmt 
annuity payment deposited or received at end of each year 
m 
number of periods per year 
pp 
constant dollar amount provided by the perpetuity 
EX 
expected cash flow 
x_{i} 
i^{th} possible cash flow 
p(x_{i}) 
Probability of receiving 
ER 
expected rate of return 
r_{i} 
i^{th} possible rate of return 
p(r_{i}) 
probability of i^{th} possible rate of return 
standard deviation 

required rate of return for j^{th} security 

r_{f} 
riskfree return 
b_{j} 
investment’s nondiversifiable risk 
ER_{m} 
expected return for the market 
D_{A} 
duration of an annuity 
D_{B} 
duration of bond B 
B 
coupon bearing bond value 
F 
zero coupon bond value 
A 
value of interest flow (annuity value) 
T 
maturity date (life of bond) 
B 
intrinsic/ present value of an asset 
c_{t} 
cash flow to be received at time t 
FV 
bond’s maturity/ par value 
p_{p} 
valuation of preferred stock 
d 
annual dividend 
p_{c} 
valuation of common stock 
p_{1} 
anticipated market price at year end 
g 
dividend growth rate 
npv 
net present value 
c_{t} 
annual aftertax cash flow 
I_{0} 
initial cash outlay 
pi 
profitability index 
eaa 
equivalent annual annuity 
ebit 
expected earnings before interest and taxes 
p 
unit sales price 
q 
number of units sold 
avc 
unit variable cost 
fc 
total fixed costs 
q_{b} 
breakeven point quantity 
vc 
total variable cost 
s 
associated level of sales 
dol 
degree of operating leverage 
dfl 
degree of financial leverage 
dcl 
degree of combined leverage 
eps 
earnings per share 
P_{j} 
preferred dividend 
sf 
sinking fund payment 
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