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Unformatted text preview: Ernest Fletcher, Jr. Chapter 2 = Pt  Pt1 + C Pt1 Formula Sheet FIN 3310 Chapter 3
= = = = = = Liabilities + Shareholder's Equity Revenues Expenses Net Income Cash Dividends Earnings before interest and taxes + depreciation + amortization expense cash taxes investment in net operating working capital investment in longterm assets Increase in current assets decrease non interest bearing current liabilities Ending net fixed assets (Beginning net fixed assets Depreciation expense) = Ending net other LT Assets (Beginning net other LT Assets Amortization expense) = Net interest paid + Net new borrowing by the firm Dividends paid + Net new equity raised by the firm Chapter 13 = F PV F = 1  V P = Q(P  V) %EBIT SV CM = = = Q(P  V)  F SV F EBIT %Sales Q(P  V)  F %EPS SVF EBIT = Q(P  V)  F  I = = SV FI EBIT I %EBIT = = DOL x DFL = =
SV SVFI %EBIT %EPS x %Sales %EBIT = %EPS %Sales = Q(P  V) Q(P  V)  F  I = CM EBITI 1 = Net Income # of shares of common stock outstanding 2 Chapter 4 and Chapter 16
cash + marketable securities + accounts receivable current liabilities = = current assets current liabilities = = sales total assets
credit sales accounts receivable sales net fixed assets
accounts receivable (credit sales / 365) inventories (cost of goods sold / 365) = = = = cos t of goods sold inventories = accounts payable (cost of goods sold / 365) = accounts payable + salaries and wages payable + payables for other resource inputs (cost of sales + selling, general and administrative expenses)/365
sales  cost of sales net income = sales sales
operating income = operating profit margin x total asset turnover total assets = = = operating income sales x total assets sales = net income x sales / shareholders' equity sales total assets total assets
ROA net income x sales total assets x = sales total assets shareholders' equity 1  debt ratio = = total debt total debt = total assets total equity = operating income interest expense = Days Sales Outstanding + Days Sales in Inventory Days of Payables Outstanding 3 = Price Price Earnings Per Share = = Earnings Per Share Book Value Per Share Price 4 Chapter 5 = net income sales
A SL t S  t S t t = S S At = S t SL S  t S t S  S (1 + g) t ( ) NI D 1 t +1 t + 1 S NI t +1 t + 1 = Assets  Spontaneous Liabilities  Retained Earnings = 1  dividends net income SL x  t x  S + x t S t At = S t ( ) NI D 1 t +1 t + 1 S NI t +1 t + 1 = A t ( g )  SL t ( g )  St ( 1+g ) ( ) D NI 1 t +1 t + 1 S NI t + 1 t +1 5 Chapter 6
= PV (1 + i)n = FV (1 + i) n i mn = PV 1 + m ( ) = + 1 mn i 1 m n = PMT + i )  1 i / (1 { }
} 1 1 /i = PMT ( 1 + i) n 1 1 = PMT / i (1 + i) ( 1 + i) n n / (1 = PMT + i )  1 i ( 1 + i ) { = i PMT Chapter 8 1 1 (1+k ) n d $I t kd $M + n (1+k d ) $M + (1 + k d ) 2n 2 = n t=1 = n t=1 1  1 k d 2n (1 + ) $I t 2 kd 2 2 6 Chapter 7 = n rj x p = n j=1 n =
2 ^ r j  r j=1
n j x pj r = t=1 t n
= n j=1 w jr j t=1
n j=1 r j 2 ^ r  n1 = w j j = R f + j k m  R f ( ) = p = w
2 1 2 1 + w2 2 + 2w1w21,2 1 2
2 2 Chapter 9
= Dp
kp D1 P1 + (1+k e ) (1+k e ) D1 ke  g
= = = D0 (1+g) ke  g dividends net income 1 = P + g D e = ROE x r = ROE1  7 Chapter 10
= EBIT + Depr. Taxes = (R  O  Depr ) (1 T) + Depr NWC = (R  O Depr) (1 T) + Depr NWC + ATSV = [(Rw Rwo) (Ow Owo ) (Dw  Dwo)] (1 T) + (Dw  Dwo) NWC = [(Rw Rwo) (Ow Owo ) (Dw  Dwo)](1 T) + (Dw  Dwo) NWC + ATSV = NI + Depr. Chapter 11
= NINV / NCF = (1 + k )tt t =1
n NCF n NCF  NINV NCFt  NINV = (1 + IRR ) t t =1 n NCFt NINV = t t= 1 (1 + k) n = t (1 + IRR ) t t =1 = Current market price of shares + Project value added / # shares outstanding 8 Chapter 1 2 1 1 (1+k ) n d $I t kd 1  1 k d 2n ) $M n $I (1 + t 2 + = n kd t=1 2 (1+k d ) 2 n =
t=1 $M + k d 2n (1 + ) 2 = kd (1  T) = P p Dp = Dp
P0 = D 1 + g Po = Rf + j km  Rf ( ) B Pf E = k k k d (1T) + p + B+ B+ B+ Pf +E Pf +E Pf +E e 9 ...
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 Spring '08
 Potts
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