FIN 3403 - Spring 2009 - Exam Handout

FIN 3403 - Spring 2009 - Exam Handout - FIN 3403 - Spring...

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FIN 3403 - Spring 2009 Exam Handout Page 1 of 22 Pages FIN 3403 - Spring 2009 Exam Handout Chapter 2 FV N = PV(1 + I) N . FVA Due = FVA Ordinary (1 + I). PVA N Due = PVA Ordinary (1 + I). PV of a perpetuity = . PV Uneven stream = . I PER = . APR = (I PER )M. Number of periods = NM. EFF% =
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FIN 3403 - Spring 2009 Exam Handout Page 2 of 22 Pages Chapter 3 EBIT = Sales revenues – Operating costs. Net cash flow = Net income + Depreciation and amortization. Total operating capital = Net operating working capital + Net fixed assets. NOPAT = EBIT(1 – Tax rate). Operating cash flow = NOPAT + Depreciation and amortization. Free cash flow = Operating cash flow – Investment in operating capital. MVA = Market value of stock – Equity capital supplied by shareholders = [(Shares outstanding)(Stock price)] – Total common equity. EVA = NOPAT – Annual dollar cost of capital = (EBIT)(1 – T) – .
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FIN 3403 - Spring 2009 Exam Handout Page 3 of 22 Pages CHAPTER 4 Current ratio = Quick, or acid test, ratio = Inventory turnover ratio = DSO = Days sales outstanding = Fixed assets turnover ratio = Total assets turnover ratio = Debt ratio = D/A = Debt ratio = D/E = Times-interest-earned (TIE) ratio = EBITDA coverage ratio = Profit margin on sales =
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FIN 3403 - Spring 2009 Exam Handout Page 4 of 22 Pages Return on total assets (ROA) = Basic earning power (BEP) ratio = ROA = Profit margin × Total assets turnover. ROA = Return on common equity (ROE) = ROE = ROA × Equity multiplier = Profit margin × Total assets turnover × Equity multiplier = × × Return on investors’ capital = Price/earnings (P/E) ratio = Price/cash flow ratio = Book value per share = Market/book (M/B) ratio = EVA = Net income – EVA = Equity capital × (ROE – Cost of equity capital).
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Page 5 of 22 Pages CHAPTER 6 r = r* + IP + DRP + LP + MRP. r RF = r* + IP. Considering cross term, r RF = r* + I + (r* × I). Assume no cross term, unless specified. r = r RF + DRP + LP + MRP. IP
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This note was uploaded on 04/08/2009 for the course FIN 3403 taught by Professor Tapley during the Spring '06 term at University of Florida.

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FIN 3403 - Spring 2009 - Exam Handout - FIN 3403 - Spring...

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