FRL 300 Formula Sheet(2)

# FRL 300 Formula - FRL 300 Common Exam Formula sheet Cash flow from assets(CFFA = Cash flow to creditors(bondholders Cash flow to

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FRL 300 Common Exam Formula sheet Cash flow from assets (CFFA) = Cash flow to creditors (bondholders) + Cash flow to stockholders (owners) Cash flow from assets (CFFA) = Operating cash flow (OCF) Net capital spending(NCS) – Change in net working capital (NWC) Where: Operating cash flow (OCF) = EBIT + Depreciation – Taxes Net capital spending (NCS) = Ending net fixed assets – Beginning net fixed assets +Depreciation Change in NWC = Ending NWC – Beginning NWC Cash flow to creditors = Interest paid – Net new borrowing Where: Net new borrowing = Ending long-term debt – Beginning long-term debt Cash flow to stockholders = Dividends paid – Net new equity raised FV= PV (1 + r) t =PV*FVIF(r,t) PV = FV / [(1 + r) t ]=FV/PVIF(r,t) FVIF(r,t) = (1 + r) t PVIF(r,t)= 1/ [(1 + r) t ] r = (FV / PV) 1/t – 1 t = ln(FV / PV) / ln(1 + r) Perpetuity PV = C / r Ordinary Annuity PV ( ) 1 1/ 1 1 (,) t r PVIF r t CC rr  −+    = = ×   Ordinary Annuity FV ( ) 11 (,) 1 t r FVIF r t +−

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## This note was uploaded on 04/30/2010 for the course FRL 300 taught by Professor Lentz during the Spring '08 term at Cal Poly Pomona.

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FRL 300 Formula - FRL 300 Common Exam Formula sheet Cash flow from assets(CFFA = Cash flow to creditors(bondholders Cash flow to

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