ECON 256 Formulas + Ppl

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Scott Gladstone

Black Rock Associate, Financial Modeling group at blackrock

Kenneth Griffin

CEO of hedgefund citadel

Jerome Powell

Chairman of the Federal Reserve

Sarah Coulum

Citadel

Unlevered FCF

EBIT * (1 - Tax Rate) + Non-Cash Charges +/- Change in working capital - CapEx

Enterprise Value

EV = MCAP + Net Debt net debt = debt - cash

DCF EV using exit multiple method

EV0 = (sum of TVs of next 5yrs FCF) + (EDITDA multiple 5 x EBITDA 5/ (1 + WACC)^5)

DCF EV using Perpetuity Growth Method

EV0 = (sum of TVs of next 5yrs FCF) + FCF5(1+g)/(r-g)* 1/(1+WACC)^5

Christine Lagarde

European Central Bank (ECB) President

Central Banks Big Four

FED, ECB (European central bank), BOE (Bank of England), BOJ (bank of Japan)

Sam Bankman-Fried (SBF)

FTX founder - fraud

Present Value

FVt/(1+r)^t

Perpetuity Growth Method

Final yr FCF x (1+g) / (r-g) g= terminal growth rate r= discount rate

Changpeng Zhao, or CZ

Founder of Binance, stepped down after pleading guilty to money laundering violations

Andrew Bailey

Governor of the Bank of England

Joe Zirpolo

Head of Training Houlihan Lowkey

IRR

Internal rate of return (IRR) is a discount rate at which the net present value (NPV) of an investment is equal to zero. If the IRR is higher than the cost of borrowing to fund the investment, the investment should be profitable.

Equity Value

Number of shares * Share price

Future Value

PV(1+r)^t

Josh Abrams

Peak6

Rishi Sunak

Prime Minister of the United Kingdom

CAPM

Re = Rf + Beta(Rm-Rf). Re = return on equity Rf= riskless rate Rm- Rf = excess return on mkt/ how much stock mkt is expected to outperform bonds ***CAPM used to calc cost of equity over LONG period of time

Mike Johnson

U.S. House of Representatives Speaker

Damian Williams

US attorney general who tried SBF

WACC

WACC = (Re * (E/(D+E)) + (Rd * (1-t) * (D/(D+E) E= MCAP D= Companys debt Re= return on equity Rd= return on debt t= tax rate

Congress passed a bill this week to avert a government shutdown. Which two are true of the bill? a) House Speaker Mike Johnson supported it. b) it cuts funding to the I.R.S. c) It includes money for Ukraine and Israel. d) It extends government funding through 2025. e) More House Democrats voted for it than House Republicans.

a) and e)

After three weeks of infighting and dysfunction, Republicans elected Representative Mike Johnson of Louisiana as the 56th speaker of the House. Which of the following is Not True about Mr. Johnson? a) elected to the house in 2002, he is one of the most senior lawmakers in decades to become speaker. b) he is second in line to the presidency. c) he opposes abortion rights and same sex marriage. d) he played a leading role in congressional efforts to overturn the 2020 election.

a) elected to the house in 2002, he is one of the most senior lawmakers in decades to become speaker he's actually one of the most junior law makers in decades

Sam Bankman-Fried was found guilty of seven counts of fraud and conspiracy. What has the case come to symbolize? a) the dangers of rushing into the subprime mortgage housing market b) the excesses of the volatile cryptocurrency industry c) the new reality of failing retail sales and changing shopping habits d) the problems with deregulation in the energy market

b) the excesses of the volatile cryptocurrency industry

Dozens of States sued Meta for what? a) harassment of female employees at the company b) having a monopoly that keeps TikTok from competing c) making Facebook and instagram addictive for children d) leaking user data e) poor content moderation that is spreading disinformation about elections

c) making Facebook and instagram addictive for children

The Supreme Court this week adopted an ethics code for the justices after a series of revelations about undisclosed gifts. Who is assigned to enforce the code? a) the attorney general b) the house speaker c) no one d) Leonard Leo, a leader of the federalist society e) the president

c) no one!! the ethics code will operate eon the honor system

working capital

current assets - current liabilities

Alex Salcedo

p&g


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