Key Formulas and Practical Applications in CMA Final SFM

Compilation of Key Formulas and Practical Applications in CMA Final SFM

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Introduction:

Welcome to our comprehensive compilation focusing on the "Key Formulas and Practical Applications in CMA Final SFM." The Strategic Financial Management (SFM) section holds significant importance within the CMA Final curriculum, as it delves into decision-making processes that directly impact a company's financial health. This article serves as your guide to 100 essential SFM formulas, presented in an approachable format, accompanied by real-world scenarios to illustrate their relevance. Let's embark on this journey to deepen our understanding of SFM concepts!

CMA Final SFM subject 100 formulas with practical applications:

Formula #	Formula Name	Simple Explanation	Practical Use Case
1	Return on Investment (ROI)	ROI = (Net Profit / Initial Investment) * 100	Measure the profitability of an investment
2	Net Present Value (NPV)	NPV = Σ [CFt / (1 + r)^t] - Initial Investment	Decide if a project's cash flows yield positive returns over time
3	Payback Period	Payback Period = Initial Investment / Annual Cash Flows	Determine the time it takes to recover an investment
4	Cost of Capital	Cost of Capital = (Cost of Equity + Cost of Debt) / Total Capital	Calculate the minimum required return for investors
5	Weighted Average Cost of Capital (WACC)	WACC = (E/V * Re) + (D/V * Rd * (1 - Tax Rate))	Evaluate the average cost of financing for projects
6	Capital Asset Pricing Model (CAPM)	Re = Rf + β * (Rm - Rf)	Estimate the expected return on a risky investment
7	Dividend Discount Model (DDM)	P0 = D1 / (Ke - g)	Determine the intrinsic value of a stock
8	Economic Order Quantity (EOQ)	EOQ = √[(2 * D * S) / H]	Optimize order quantity for cost-efficient inventory management
9	Working Capital Turnover Ratio	Working Capital Turnover Ratio = Sales / Working Capital	Assess the efficiency of working capital utilization
10	Days Sales Outstanding (DSO)	DSO = (Accounts Receivable / Net Sales) * Number of Days	Evaluate the average time taken to collect receivables
11	Interest Coverage Ratio	Interest Coverage Ratio = EBIT / Interest Expense	Measure a company's ability to meet its interest obligations
12	Inventory Turnover Ratio	Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory	Evaluate how frequently inventory is sold and replaced
13	Return on Assets (ROA)	ROA = Net Profit / Total Assets	Measure the profitability of a company's assets
14	DuPont Analysis	ROE = (Net Profit Margin) * (Asset Turnover) * (Equity Multiplier)	Analyze the components affecting Return on Equity
15	Gross Profit Margin	Gross Profit Margin = (Gross Profit / Net Sales) * 100	Evaluate the percentage of sales retained as gross profit
16	Operating Profit Margin	Operating Profit Margin = (Operating Profit / Net Sales) * 100	Measure the percentage of sales retained as operating profit
17	Net Profit Margin	Net Profit Margin = (Net Profit / Net Sales) * 100	Assess the percentage of sales retained as net profit
18	Current Ratio	Current Ratio = Current Assets / Current Liabilities	Measure a company's ability to cover short-term liabilities
19	Quick Ratio (Acid-Test Ratio)	Quick Ratio = (Current Assets - Inventory) / Current Liabilities	Evaluate liquidity by excluding slow-moving inventory
20	Debt Equity Ratio	Debt Equity Ratio = Total Debt / Total Equity	Assess the proportion of external funds used for financing
21	Times Interest Earned (TIE) Ratio	TIE Ratio = EBIT / Interest Expense	Evaluate a company's ability to meet its interest obligations
22	Operating Leverage	Operating Leverage = Contribution Margin / Operating Profit	Measure the impact of fixed costs on operating income
23	Financial Leverage	Financial Leverage = Total Assets / Total Equity	Measure the proportion of equity financing in a company
24	Combined Leverage	Combined Leverage = Operating Leverage * Financial Leverage	Measure the total impact of fixed and financial leverage
25	Degree of Operating Leverage (DOL)	DOL = % Change in EBIT / % Change in Sales	Measure how operating leverage affects changes in EBIT
26	Degree of Financial Leverage (DFL)	DFL = % Change in EPS / % Change in EBIT	Measure how financial leverage affects changes in EPS
27	Degree of Combined Leverage (DCL)	DCL = % Change in EPS / % Change in Sales	Measure how total leverage affects changes in EPS
28	Black-Scholes Option Pricing Model	Option Price = S * N(d1) - X * e^(-rt) * N(d2)	Calculate the theoretical price of a European option
29	Capital Structure Theories (Modigliani-Miller Theorems)	Proposition I: V = EBIT * (1 - Tax Rate) / Ke	Discuss theories on capital structure and value
30	Dividend Payout Ratio	Dividend Payout Ratio = Dividends / Net Income	Measure the proportion of earnings distributed as dividends
31	Dividend Yield	Dividend Yield = Dividends per Share / Market Price per Share	Measure the return on investment from dividends
32	Price Earnings (P/E) Ratio	P/E Ratio = Market Price per Share / Earnings per Share	Evaluate the price investors are willing to pay for earnings
33	Internal Rate of Return (IRR)	NPV = Σ [CFt / (1 + IRR)^t] - Initial Investment	Calculate the discount rate yielding a zero NPV for a project
34	Beta (β) Coefficient	Beta = Covariance(Stock Returns, Market Returns) / Variance(Market Returns)	Measure a stock's volatility compared to the market
35	Profitability Index (PI)	PI = PV of Inflows / PV of Outflows	Evaluate the benefits relative to the costs of an investment
36	Fisher Effect	(1 + Nominal Interest Rate) = (1 + Real Interest Rate) * (1 + Expected Inflation Rate)	Explain the relationship between nominal and real interest rates
37	Firm's Value after Merger (With Synergy)	Value = Value of Acquiring Firm + Value of Target Firm + Synergy	Calculate the combined value of two merging firms with synergy
38	Sustainable Growth Rate	Sustainable Growth Rate = ROE * (1 - Dividend Payout Ratio)	Estimate a company's growth rate while maintaining a financial structure
39	Degree of Total Leverage (DTL)	DTL = % Change in EPS / % Change in Sales	Measure the total impact of operating and financial leverage on EPS
40	Modified Duration	Modified Duration = Macaulay Duration / (1 + YTM)	Measure the sensitivity of a bond's price to interest rate changes
41	Operating Cycle	Operating Cycle = Inventory Holding Period + Receivables Collection Period	Measure the time taken to convert inventory to cash
42	Cash Conversion Cycle	Cash Conversion Cycle = Operating Cycle - Payables Deferral Period	Measure the time a company takes to convert inventory to cash
43	Optimal Capital Budget	Optimal Capital Budget = IRR of Investment / Cost of Capital	Determine the maximum investment amount with a given return
44	Hedging Percentage	Hedge Percentage = Hedge Value / Exposure Value	Determine the proportion of exposure that should be hedged
45	Worst Case Loss (Options)	Worst Case Loss = Option Premium + Maximum Loss on Underlying	Estimate the maximum loss in options trading
46	Equivalent Annual Annuity	EAA = NPV / PVIFA	Convert uneven cash flows into an equivalent annuity
47	Value at Risk (VaR)	VaR = Mean - (Z * Standard Deviation)	Estimate potential loss within a specific confidence level
48	Modified Internal Rate of Return (MIRR)	MIRR = ((FV of Cash Inflows / PV of Cash Outflows)^(1 / n)) - 1	Calculate the rate of return that equalizes inflows and outflows
49	Receivables Turnover Ratio	Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable	Measure the efficiency of collecting accounts receivable
50	Inventory Conversion Period	Inventory Conversion Period = 365 / Inventory Turnover Ratio	Measure the average time taken to sell and replace inventory
51	Average Collection Period	Average Collection Period = 365 / Receivables Turnover Ratio	Measure the average time taken to collect accounts receivable
52	Beta Unleveraged	βu = βl / (1 + (1 - Tax Rate) * (D / E))	Measure the sensitivity of an asset's returns to the market
53	Beta Releveraged	βl = βu * (1 + (1 - Tax Rate) * (D / E))	Measure the asset's risk after adjusting for leverage
54	Break-Even Point	Break-Even Point (in Units) = Fixed Costs / (Price per Unit - Variable Cost per Unit)	Determine the sales needed to cover all costs
55	Degree of Operating Leverage (DOL) at Break-Even	DOL = Q / (Q - BEP)	Measure how operating leverage affects profits at the break-even point
56	Sensitivity Analysis	Sensitivity = (ΔNPV / NPV) / (Δx / x)	Evaluate the impact of changes in variables on NPV
57	Horizontal Analysis	Horizontal Analysis = (Current Year Value - Base Year Value) / Base Year Value	Compare changes in financial data across years
58	Vertical Analysis	Vertical Analysis = (Item Value / Total Revenue or Total Assets) * 100	Evaluate the proportion of an item relative to a total
59	Comprehensive Income	Comprehensive Income = Net Income + Other Comprehensive Income	Summarize all changes in equity except transactions with shareholders
60	Marginal Costing	Profit = Sales - Variable Costs - Fixed Costs	Calculate profit by subtracting variable and fixed costs from sales
61	Degree of Operating Leverage in Contribution Margin	Operating Leverage = Contribution Margin / Operating Profit	Measure how contribution margin affects operating leverage
62	Debt Service Coverage Ratio (DSCR)	DSCR = EBITDA / Total Debt Service	Measure a company's ability to meet its debt obligations
63	Theil's U Statistic	U = √[(Σ((X - Y)^2)) / (Σ(X^2))]	Measure the inequality in distribution among variables
64	Stock Turnover Ratio	Stock Turnover Ratio = Cost of Goods Sold / Average Stock	Evaluate how quickly inventory is converted into sales
65	Theil Index (T)	T = (U^2) / n	Measure the inequality of distribution using U Statistic
66	Inventory Holding Period	Inventory Holding Period = 365 / Stock Turnover Ratio	Measure the average time inventory is held before the sale
67	Price Earnings to Growth (PEG) Ratio	PEG Ratio = P/E Ratio / Annual Earnings Growth Rate	Evaluate a stock's value relative to its earnings growth
68	Payback Discounting Factor	Payback Discounting Factor = 1 / (1 + r)^t	Calculate the present value factor for the payback period
69	Diluted Earnings per Share (EPS)	Diluted EPS = (Net Income - Preferred Dividends) / (Weighted Average Shares + Convertible Securities)	Calculate diluted EPS accounting for potential conversions
70	Inflation-adjusted Return	Inflation-adjusted Return = [(1 + Real Return) * (1 + Inflation Rate)] - 1	Adjust investment return for inflation
71	Defensive Interval Ratio	Defensive Interval Ratio = Cash + Marketable Securities + Receivables / Daily Operating Expenses	Measure the number of days a company can operate using liquid assets
72	Quick Ratio	Quick Ratio = (Cash + Marketable Securities + Receivables) / Current Liabilities	Measure a company's ability to cover short-term liabilities using quick assets
73	Equity Multiplier	Equity Multiplier = Total Assets / Total Equity	Measure the financial leverage of a company
74	Accounts Receivable Turnover Ratio	Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable	Evaluate how quickly a company collects accounts receivable
75	Modified DuPont Analysis	ROE = (Net Profit Margin) * (Total Asset Turnover) * (Equity Multiplier)	Analyze Return on Equity considering various factors
76	Debt Ratio	Debt Ratio = Total Debt / Total Assets	Measure the proportion of assets financed by debt
77	Modified Total Leverage	Modified Total Leverage = Operating Leverage * (1 + (1 - Tax Rate) * (D / E))	Measure the total impact of operating and financial leverage on EPS
78	Cash Ratio	Cash Ratio = (Cash + Marketable Securities) / Current Liabilities	Measure a company's ability to cover short-term liabilities using cash
79	Days Payable Outstanding (DPO)	DPO = (Accounts Payable / COGS) * Number of Days	Measure the average time taken to pay accounts payable
80	Firm's Value before Merger	Value = Value of Acquiring Firm + Value of Target Firm	Calculate the combined value of two merging firms
81	Inflation-adjusted Price Earnings (P/E) Ratio	Inflation-adjusted P/E Ratio = Nominal P/E Ratio / (1 + Inflation Rate)	Adjust the P/E ratio for inflation to compare valuations
82	Modified Internal Rate of Return (MIRR) for Uneven Cash Flows	MIRR = ((FV of Cash Inflows / PV of Cash Outflows)^(1 / n)) - 1	Calculate IRR for uneven cash flows considering reinvestment
83	Effective Annual Rate (EAR)	EAR = (1 + Nominal Interest Rate / m)^m - 1	Convert nominal interest rate to effective annual rate
84	Return on Common Equity (ROCE)	ROCE = EBIT / (Total Assets - Total Current Liabilities)	Measure return on equity considering non-operating items
85	Return on Investment (ROI) for Uneven Cash Flows	ROI = (Cumulative Cash Flow / Initial Investment) * 100	Measure profitability for uneven cash flow investments
86	Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)	EBITDA = EBIT + Depreciation + Amortization	Measure a company's operating performance without non-operating expenses
87	Weighted Harmonic Mean	Weighted Harmonic Mean = n / Σ (wi / xi)	Calculate a weighted average using the harmonic mean
88	Dividend Discount Model (DDM) with Constant Growth Rate	P0 = D1 / (Ke - g)	Estimate stock's value with stable dividends
89	Return on Equity (ROE) with Leverage	ROE = ROA + (ROA - r) * (D / E)	Measure return on equity considering leverage
90	Effective Interest Rate for Discounting	Effective Interest Rate = (1 + Nominal Interest Rate / n)^n - 1	Calculate the annual effective rate for discounting
91	Capital Asset Pricing Model (CAPM) for Expected Return	Expected Return = Rf + β * (Rm - Rf)	Estimate the expected return on a security
92	Weighted Average Cost of Capital (WACC) for Leveraged Firm	WACC = (E / V) * Re + (D / V) * Rd * (1 - Tax Rate)	Calculate the cost of capital considering the financing mix
93	DuPont Analysis Expanded Formula	ROE = (Net Profit Margin) * (Total Asset Turnover) * (Equity Multiplier)	Analyze Return on Equity considering various factors
94	Modified Internal Rate of Return (MIRR) for Even Cash Flows	MIRR = ((FV of Cash Inflows / PV of Cash Outflows)^(1 / n)) - 1	Calculate IRR for even cash flows considering reinvestment
95	Receivables Turnover Ratio	Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable	Measure the efficiency of collecting accounts receivable
96	Inventory Conversion Period	Inventory Conversion Period = 365 / Inventory Turnover Ratio	Measure the average time taken to sell and replace inventory
97	Average Collection Period	Average Collection Period = 365 / Receivables Turnover Ratio	Measure the average time taken to collect accounts receivable
98	Beta Unleveraged	βu = βl / (1 + (1 - Tax Rate) * (D / E))	Measure the sensitivity of an asset's returns to the market
99	Beta Releveraged	βl = βu * (1 + (1 - Tax Rate) * (D / E))	Measure the asset's risk after adjusting for leverage
100	Break-Even Point	Break-Even Point (in Units) = Fixed Costs / (Price per Unit - Variable Cost per Unit)	Determine the sales needed to cover all costs

These explanations should help you understand the meaning and purpose of each formula along with how to use them practically. Remember that these formulas are tools to aid decision-making and financial analysis. It's important to practice their applications to become more proficient in using them effectively in real-world scenarios.

all 100 formulas to help illustrate their practical applications. Please note that the values used in the examples are for explanatory purposes and may not reflect real-world accuracy.

Formula #	Formula Name	Example in INR	Explanation and Practical Use
1	Return on Investment (ROI)	ROI = (500,000 / 1,000,000) * 100	An investment earned a 50% return on a 1,000,000 INR investment.
2	Net Present Value (NPV)	NPV = Σ [CFt / (1 + 0.1)^t] - 1,000,000	A project's cash flows sum up to 1,500,000 INR over 3 years.
3	Payback Period	Payback Period = 1,000,000 / 400,000	An investment of 1,000,000 INR will be recovered in 2.5 years.
4	Cost of Capital	Cost of Capital = (0.4 + 0.6) / 1.0	A company's cost of capital considering equity and debt financing.
5	Weighted Average Cost of Capital (WACC)	WACC = (0.6 * 0.12) + (0.4 * 0.08 * 0.6)	Calculate the average cost of financing for a project.
6	Capital Asset Pricing Model (CAPM)	Re = 0.06 + 1.2 * (0.1 - 0.06)	Estimate the expected return on a risky investment.
7	Dividend Discount Model (DDM)	P0 = 5 / (0.12 - 0.06)	Determine the value of a stock with stable dividends.
8	Economic Order Quantity (EOQ)	EOQ = √[(2 * 5,000 * 200) / 0.25]	Optimize order quantity for inventory management.
9	Working Capital Turnover Ratio	Working Capital Turnover = 1,000,000 / 500,000	Evaluate the efficiency of working capital utilization.
10	Days Sales Outstanding (DSO)	DSO = (200,000 / 1,000,000) * 365	Measure the average time taken to collect receivables.
11	Interest Coverage Ratio	Interest Coverage Ratio = 400,000 / 100,000	Measure a company's ability to meet its interest obligations.
12	Inventory Turnover Ratio	Inventory Turnover Ratio = 600,000 / 120,000	Evaluate how frequently inventory is sold and replaced.
13	Return on Assets (ROA)	ROA = 100,000 / 800,000	Measure the profitability of a company's assets.
14	DuPont Analysis	ROE = (0.15) * (0.8) * (1.5)	Analyze the components affecting Return on Equity.
15	Gross Profit Margin	Gross Profit Margin = (200,000 / 600,000) * 100	Evaluate the percentage of sales retained as gross profit.
16	Operating Profit Margin	Operating Profit Margin = (150,000 / 600,000) * 100	Measure the percentage of sales retained as operating profit.
17	Net Profit Margin	Net Profit Margin = (100,000 / 600,000) * 100	Assess the percentage of sales retained as net profit.
18	Current Ratio	Current Ratio = 300,000 / 100,000	Measure a company's ability to cover short-term liabilities.
19	Quick Ratio (Acid-Test Ratio)	Quick Ratio = (300,000 - 120,000) / 100,000	Evaluate liquidity by excluding slow-moving inventory.
20	Debt Equity Ratio	Debt Equity Ratio = 200,000 / 500,000	Assess the proportion of external funds used for financing.
21	Times Interest Earned (TIE) Ratio	TIE Ratio = 250,000 / 50,000	Evaluate a company's ability to meet its interest obligations.
22	Operating Leverage	Operating Leverage = 300,000 / 150,000	Measure the impact of fixed costs on operating income.
23	Financial Leverage	Financial Leverage = 800,000 / 500,000	Measure the proportion of equity financing in a company.
24	Combined Leverage	Combined Leverage = 1.5 * 1.6	Measure the total impact of fixed and financial leverage.
25	Degree of Operating Leverage (DOL)	DOL = 0.3 / 0.2	Measure how operating leverage affects changes in EBIT.
26	Degree of Financial Leverage (DFL)	DFL = 0.2 / 0.3	Measure how financial leverage affects changes in EPS.
27	Degree of Combined Leverage (DCL)	DCL = 0.2 / 0.2	Measure how total leverage affects changes in EPS.
28	Black-Scholes Option Pricing Model	Option Price = 50 * 0.6 - 40 * 0.8 * e^(-0.1 * 1)	Calculate the theoretical price of a European option.
29	Capital Structure Theories (Modigliani-Miller Theorems)	Proposition I: 600,000 * (1 - 0.3) / 0.15	Discuss theories on capital structure and value.
30	Dividend Payout Ratio	Dividend Payout Ratio = 100,000 / 150,000	Measure the proportion of earnings distributed as dividends.
31	Dividend Yield	Dividend Yield = 3 / 60 * 100	Measure the return on investment from dividends.
32	Price Earnings (P/E) Ratio	P/E Ratio = 60 / 6	Evaluate the price investors are willing to pay for earnings.
33	Internal Rate of Return (IRR)	NPV = Σ [CFt / (1 + IRR)^t] - 500,000	Calculate the discount rate yielding a zero NPV for a project.
34	Beta (β) Coefficient	Beta = 0.6 / 0.2	Measure a stock's volatility compared to the market.
35	Profitability Index (PI)	PI = 1,200,000 / 1,000,000	Evaluate the benefits relative to the costs of an investment.
36	Fisher Effect	(1 + 0.08) = (1 + 0.06) * (1 + 0.02)	Explain the relationship between nominal and real interest rates.
37	Firm's Value after Merger (With Synergy)	Value = 2,000,000 + 1,500,000 + 500,000	Calculate the combined value of two merging firms with synergy.
38	Sustainable Growth Rate	Sustainable Growth Rate = 0.15 * (1 - 0.4)	Estimate a company's growth rate while maintaining financial structure.
39	Degree of Total Leverage (DTL)	DTL = 0.3 / 0.2	Measure the total impact of operating and financial leverage on EPS.
40	Modified Duration	Modified Duration = 5 / (1 + 0.08)	Measure the sensitivity of a bond's price to interest rate changes.
41	Operating Cycle	Operating Cycle = 40 + 30	Measure the time taken to convert inventory to cash.
42	Cash Conversion Cycle	Cash Conversion Cycle = 70 - 20	Measure the time a company takes to convert inventory to cash.
43	Optimal Capital Budget	Optimal Capital Budget = 0.15 / 0.1	Determine the maximum investment amount with a given return.
44	Hedging Percentage	Hedge Percentage = 50,000 / 100,000	Determine the proportion of exposure that should be hedged.
45	Worst Case Loss (Options)	Worst Case Loss = 2,000 + 3,000	Estimate the maximum loss in options trading.
46	Equivalent Annual Annuity	EAA = 500,000 / 3.3522	Convert uneven cash flows into an equivalent annuity.
47	Value at Risk (VaR)	VaR = 1,000 - 1.645 * 200	Estimate potential loss within a specific confidence level.
48	Modified Internal Rate of Return (MIRR)	MIRR = ((1,500,000 / 1,000,000)^(1 / 3)) - 1	Calculate the rate of return that equalizes inflows and outflows.
49	Receivables Turnover Ratio	Receivables Turnover Ratio = 1,200,000 / 300,000	Measure the efficiency of collecting accounts receivable.
50	Inventory Conversion Period	Inventory Conversion Period = 365 / 5	Measure the average time taken to sell and replace inventory.
51	Average Collection Period	Average Collection Period = 365 / 6	Measure the average time taken to collect accounts receivable.
52	Beta Unleveraged	βu = 0.8 / (1 + (1 - 0.3) * (500,000 / 1,000,000))	Measure the sensitivity of an asset's returns to the market.
53	Beta Releveraged	βl = 0.6 * (1 + (1 - 0.3) * (500,000 / 1,000,000))	Measure the asset's risk after adjusting for leverage.
54	Break-Even Point	Break-Even Point (in Units) = 200,000 / (10 - 5)	Determine the sales needed to cover all costs.
55	Degree of Operating Leverage (DOL) at Break-Even	DOL = 300,000 / (300,000 - 200,000)	Measure how operating leverage affects profits at the break-even point.
56	Sensitivity Analysis	Sensitivity = (50,000 / 1,000,000) / (0.1 / 0.12)	Evaluate the impact of changes in variables on NPV.
57	Horizontal Analysis	Horizontal Analysis = (600,000 - 500,000) / 500,000	Compare changes in financial data across years.
58	Vertical Analysis	Vertical Analysis = (100,000 / 600,000) * 100	Evaluate the proportion of an item relative to a total.
59	Comprehensive Income	Comprehensive Income = 150,000 + 10,000	Summarize all changes in equity except transactions with shareholders.
60	Marginal Costing	Profit = 200,000 - 100,000 - 50,000	Calculate profit by subtracting variable and fixed costs from sales.
61	Degree of Operating Leverage in Contribution Margin	Operating Leverage = 0.4 / 0.2	Measure how contribution margin affects operating leverage.
62	Debt Service Coverage Ratio (DSCR)	DSCR = 180,000 / 50,000	Measure a company's ability to meet its debt obligations.
63	Theil's U Statistic	U = √[(100^2 + 200^2 + 300^2) / (100^2)]	Measure the inequality in distribution among variables.
64	Stock Turnover Ratio	Stock Turnover Ratio = 800,000 / 100,000	Evaluate how quickly inventory is converted into sales.
65	Theil Index (T)	T = (1 + 9 + 25) / 3	Measure the inequality of distribution using U Statistic.
66	Inventory Holding Period	Inventory Holding Period = 365 / 8	Measure the average time inventory is held before the sale.
67	Price Earnings to Growth (PEG) Ratio	PEG Ratio = 20 / 0.12	Evaluate a stock's value relative to its earnings growth.
68	Payback Discounting Factor	Payback Discounting Factor = 1 / (1 + 0.1)^3	Calculate the present value factor for the payback period.
69	Diluted Earnings per Share (EPS)	Diluted EPS = (100,000 - 5,000) / (50,000 + 2,000)	Calculate diluted EPS accounting for potential conversions.
70	Inflation-adjusted Return	Inflation-adjusted Return = [(1 + 0.08) * (1 + 0.06)] - 1	Adjust investment return for inflation.
71	Defensive Interval Ratio	Defensive Interval Ratio = (50,000 + 10,000 + 40,000) / 10,000	Measure the number of days a company can operate using liquid assets.
72	Quick Ratio	Quick Ratio = (50,000 + 10,000 + 40,000) / 30,000	Measure a company's ability to cover short-term liabilities using quick assets.
73	Equity Multiplier	Equity Multiplier = 300,000 / 200,000	Measure the financial leverage of a company.
74	Accounts Receivable Turnover Ratio	Accounts Receivable Turnover Ratio = 1,200,000 / 300,000	Evaluate how quickly a company collects accounts receivable.
75	Modified DuPont Analysis	ROE = (0.15) * (0.8) * (1.5)	Analyze Return on Equity considering various factors.
76	Debt Ratio	Debt Ratio = 200,000 / 500,000	Measure the proportion of assets financed by debt.
77	Modified Total Leverage	Modified Total Leverage = 0.4 * (1 + (1 - 0.3) * (300,000 / 200,000))	Measure total impact of operating and financial leverage on EPS.
78	Cash Ratio	Cash Ratio = (50,000 + 10,000) / 30,000	Measure a company's ability to cover short-term liabilities using cash.
79	Days Payable Outstanding (DPO)	DPO = (30,000 / 400,000) * 365	Measure the average time taken to pay accounts payable.
80	Firm's Value Before Merger	Value = 2,000,000 + 1,500,000	Calculate the combined value of two merging firms.
81	Inflation-adjusted Price Earnings (P/E) Ratio	Inflation-adjusted P/E Ratio = 15 / (1 + 0.06)	Adjust P/E ratio for inflation to compare valuations.
82	Modified Internal Rate of Return (MIRR) for Uneven Cash Flows	MIRR = ((1,500,000 / 1,000,000)^(1 / 3)) - 1	Calculate IRR for uneven cash flows considering reinvestment.
83	Effective Annual Rate (EAR)	EAR = (1 + 0.1 / 2)^2 - 1	Convert nominal interest rate to effective annual rate.
84	Return on Common Equity (ROCE)	ROCE = 80,000 / (600,000 - 100,000)	Measure return on equity considering non-operating items.
85	Return on Investment (ROI) for Uneven Cash Flows	ROI = (400,000 / 600,000) * 100	Measure profitability for uneven cash flow investments.
86	Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)	EBITDA = 150,000 + 20,000 + 10,000	Measure a company's operating performance without non-operating expenses.
87	Weighted Harmonic Mean	Weighted Harmonic Mean = 3 / [(0.2 / 1) + (0.3 / 2) + (0.5 / 3)]	Calculate a weighted average using harmonic mean.
88	Dividend Discount Model (DDM) with Constant Growth Rate	P0 = 2 / (0.12 - 0.06)	Estimate stock's value with stable dividends.
89	Return on Equity (ROE) with Leverage	ROE = 0.2 + (0.2 - 0.1) * (300,000 / 200,000)	Measure return on equity considering leverage.
90	Effective Interest Rate for Discounting	Effective Interest Rate = (1 + 0.1 / 4)^4 - 1	Calculate the annual effective rate for discounting.
91	Capital Asset Pricing Model (CAPM) for Expected Return	Expected Return = 0.05 + 1.2 * (0.1 - 0.05)	Estimate the expected return on a security.
92	Weighted Average Cost of Capital (WACC) for Leveraged Firm	WACC = (0.4 * 0.12) + (0.6 * 0.08 * (1 - 0.3))	Calculate the cost of capital considering the financing mix.
93	DuPont Analysis Expanded Formula	ROE = (0.15) * (0.8) * (1.5)	Analyze Return on Equity considering various factors.
94	Modified Internal Rate of Return (MIRR) for Even Cash Flows	MIRR = ((1,500,000 / 1,000,000)^(1 / 3)) - 1	Calculate IRR for even cash flows considering reinvestment.
95	Receivables Turnover Ratio	Receivables Turnover Ratio = 1,200,000 / 300,000	Measure the efficiency of collecting accounts receivable.
96	Inventory Conversion Period	Inventory Conversion Period = 365 / 5	Measure the average time taken to sell and replace inventory.
97	Average Collection Period	Average Collection Period = 365 / 6	Measure the average time taken to collect accounts receivable.
98	Beta Unleveraged	βu = 0.8 / (1 + (1 - 0.3) * (500,000 / 1,000,000))	Measure the sensitivity of an asset's returns to the market.
99	Beta Releveraged	βl = 0.6 * (1 + (1 - 0.3) * (500,000 / 1,000,000))	Measure the asset's risk after adjusting for leverage.
100	Break-Even Point	Break-Even Point (in Units) = 200,000 / (10 - 5)	Determine the sales needed to cover all costs.

These examples may provide you with a better understanding of how each formula works in practice, using Indian Rupees as the context. Keep in mind that these are simplified examples and real-world scenarios may involve more complex calculations and variables.

Please note that the above formulas are provided for reference and understanding. Make sure to practice and apply these formulas to various scenarios in order to strengthen your grasp of Strategic Financial Management (SFM) concepts for the CMA Final examination.

Conclusion:

Mastery of Strategic Financial Management formulas is essential for CMA Final aspirants. These 100 formulas stand as pillars in SFM concepts, aiding in astute financial choices. By grasping their practical significance, you'll adeptly evaluate investments, scrutinize project feasibility, and manage risks proficiently. Through continuous practice and application, these formulas transform into powerful tools for real-world scenarios. Wishing you joyful learning and success on your CMA journey!