6.2 Lecture_12_Thursday_20_August

6.2 Lecture_12_Thursday_20_August

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Unformatted text preview: • Ie, Notes Payable 30­day Bills etc that behave like very short­term Bonds Long­term Debt ____________________________ 19 19 • Therefore for WACC and for Capital Structure in general: E wS = D+E and D wd = D+E And if preference stock exists : E wS = ; D + E + EPREF EPREF D wd = ; wd = D + E + EPREF D + E + EPREF Debt excludes CL except for Notes Payable However, textbooks often _______________ ____________________________________ 20 20 Calculate Debt Ratio for WACC, and the D/ E Ratio in same way D Notes Payable + ( Long − term Debt ) = ( D + E ) Notes Payable + ( Long − term Debt ) + Equity = 600 + 500 600 + 500 + 1552 D 600 + 500 = E 1552 = 0.71 = 41.48% 2009 Notes Payable Long-term Debt Equity D/(D+E) = D/E = 600 500 1552 41.48% 0.71 2008 720 1000 133 92.82% 12.93 2007 200 323 664 44.06% 0.79 21 21 Market value ratios P/E Ratio Price/Cash­flow per Share Ratio Market to Book Ratio P P ratio = E EPS 22 22 Calculate the P/E ratio. P0 = $12.17 NPAT EPS = = N P P0 = = E EPS . 23 23 Price/Cashflow Ratio Share Price P/CF = NPAT + Dep n Shares Outstanding P = n NPAT + Dep N 24 24 NPAT + Depreciation Cash Flow...
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This note was uploaded on 12/23/2009 for the course BCOM FINC 202 taught by Professor Warwickanderson during the Spring '09 term at Canterbury.

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