Compustat Capitalization: Calculation and Applications

Posted on Feb 22, 2025 in Mathematics

Unit 3: Compustat Capitalization

1. Calculating Capitalization in Compustat

We consider (1 + i)ⁿ a capitalization selection factor. In the case of Compustat capitalization, this factor shifts a given amount from one moment to a later one.

S (1 + I)^NL-Factor updates the Compustat capitalization, shifting a given amount from one moment to an earlier one. That is, it shifts negative translations of capital.

2. Calculating Initial Capitalization in Compustat

Regardless of the capitalization regime applied, the corporate governance ki = c_n – c₀. If we apply Compustat capitalization: and co = [(1 + i)ⁿ – 1]

3. Fractionation of Amounts

Consider the year divided into k parts, and designate x and k as corresponding to each k-th part. The correlation between the time amounts Yl and k, as discussed in simple capitalization, should also be taken into account in Compustat capitalization. Then, if the amounts sil_{k, l}nk take the time investment, we must also express it in k-th parts. The number yl of sra prio2 to consider nk.

cn co = (1 + i_k)^nk

4. Nominal Amounts _k j

The nominal amount j_k is obtained by multiplying k by AKL to the decimal amount k-and_kd k-xl number of tenths. KS Yama nominal XK will serve to designate numbers or another, in both k and k-th decimal.

j_k can be expressed, indistinctly, as a nominal convertible amount, or cumulative, or k-capital VCS year.

Starting from kj = _kand _k. k, k = 1 will coincide when only the nominal amount is the effective year. d + kk ls sha values can take, different from ra d i j _ks

5. Equivalence of Capital in Compustat Capitalization

As we mentioned earlier, two amounts k with different cities and different maturity amounts will be equivalent at a time Yamada-time if valued at that moment, they are equal.

To achieve this, in Compustat capitalization, we apply the factor (1 + i)^p by the time it takes for one of the effects to differ from the maturity we want to transfer capital to.

6. Applications of Compustat Capitalization

1. Loan Amortization

The financial conditions of an interlibrary equilibrium require:

Value = current value of interlibrary amounts of payments that amortize it, valued at amount i.

2. European Capital

An operation means a constitution in djando, going deep full sha k 1 d 1 time in Cabo pueda disponrs Mon capital constituted.

The final value of the constituted capital is called yamarmos capital, which is obtained from deposits or impositions of SAS that were deeply realized in it.

c = sum _constituted final value of the extractions, valued at amount and in n

3. Calculation of the APR in a Financial Operation

a) Nominal APR Equivalent

In those operations that contract to 1 for both j _kpar-capital, or accumulated convertible in prio2 k-th decimals, the APR for both annual and SL equivalent nominal amount.

b) Effective Annual Cost Rate (TAEC) of a Financial Operation

In those active bank operations, loans to homes or companies, require the borrower to return the amount of the loan with interest, but generally, the operation involves other expenses such as a study commission required by the bank, opening commission, etc.