Midterm 2 Formula Sheet(2) - Formula Sheet Midterm 2 N =...

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Formula Sheet – Midterm 2 Chapter 4: TA Turnover = Sales Total Assets Operating Margin = EBIT Sales Profit Margin = Net Income Sales Debt Ratio = Total Debt Total Assets Equity Multiplier = Total Assets Total Equity ROA = Net Income Total Assets ROE = Net Income Common Equity P / E = Price per share Earnings per share M / B = Market Value of Equity BookValue of Equity ROE = PM xTATO x EM Chapter 8: ^ r = i = 1 N P i r i σ = i = 1 N ( r i ^ r ) 2 P i CV = σ ^ r ^ r p = i = 1 N w i ^ r i b p = i = 1 N w i b i r i = r RF +( r M r RF ) b i RP M =( r M r RF ) Chapter 9: ^ P 0 = D 1 r s g ^ r s = D 1 P 0 + g ^ P 0 = D 1 ( 1 + r s ) 1 + D 2 ( 1 + r s ) 2 + + D N ( 1 + r s ) N + ^ P N ( 1 + r s ) N ^ P N = D N + 1 r s g V company = FCF 1 ( 1 + WACC ) 1 + FCF 2 ( 1 + WACC ) 2 + + FCF N
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