Review Sheet- Final

Review Sheet Final - Ch.2 PV of Perpetuity = payment/interest PV of growing perpetuity = cash flow(discount rate – growth rate Stated annual

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Unformatted text preview: Ch.2: PV of Perpetuity = payment/interest. PV of growing perpetuity = cash flow/ (discount rate – growth rate). Stated annual rate/#payments per yr. = periodic rate. # of periods = (#yrs)(p per yr). “ net present value ” npv( int, yr of Cf0, {1,2,3}). Nom( eff, #periods) eff( nom rate, periods/year). IRR(-invest cost,{a,b})use for rate return on invest or int rates. [ordinary annuity end of period, annuity due beginning of period]. PV =CF/I. EFF&EAR change. APR ”annual%rate=(periodic rate)(#of periods). N=(#of compound periods)(#yrs). I=int/#compound periods). WACC =debt&equity. Chapter 3: common shareholders equity= Assets – Liabilities – Preferred stock or eq.. Assets = Liabilities + Stockholders Equity. EBIT= sale rev- opp cost (-depr) or =EBT+int or =sales-exp or opp cost. EBT =EBIT(1-T) or=EBIT-tax or=EBIT-(EBIT(tax))or=NI/(1-T) Net cash flow =NI+dep.+amort. Total opp capital =opp cap+fixed assets. Operating cash flow = EBIT(1-tax rate) “NOPAT” + dep. + amort. Free Cash Flow (FCF) = [(EBIT(1-T))+dep.+amort.]-[(gross)capital expenditures + change in net operating working capital (NOWC)]or[operating cash flow-investment in operating capital.] NOWC =current assets - noninterest bearing current liabilities (no notes payable).current liabilities (no notes payable)....
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This note was uploaded on 01/24/2011 for the course BMGT 340 taught by Professor White during the Spring '08 term at Maryland.

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