6200_Formula_Midterm-FINAL_Ross_8-edition

6200_Formula_Midterm-FINAL_Ross_8-edition - BUAD 6200...

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Chapter 2 OCF = EBIT + Depreciation – Taxes EAR = [1 + (APR / m )] m – 1 Change in NWC = NWC end – NWC beg => (CA end – CL end ) – (CA beg – CL beg ) Net capital spending = NFA end – NFA beg + Depreciation CFA = OCF – Change in NWC – Net capital spending Cash flow to creditors = Interest – Net new LTD (long term debt) Cash flow to stockholders = Cash flow from assets – Cash flow to creditors Cash flow to stockholders = Dividends – Net new equity Net new equity = Common stock end – Common stock beg Net new equity = OE end – OE beg + RE beg – (RE beg + Additions to RE)=OE end – OE beg Addition to RE Cash flow to stockholders = Dividends – Net new equity Cash flow from assets = Cash flow from creditors + Cash flow to stockholders Chapter 4 FV = C 0 ×(1 + r ) T 1 r C PV perpetuity = g r C PV perpetuity growing - = + + - - = T annuity growing r g g r C PV ) 1 ( 1 1
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6200_Formula_Midterm-FINAL_Ross_8-edition - BUAD 6200...

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