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Unformatted text preview: Rev Revenues- Exp Less Operating Expenses EBIT Earnings before Interest and Taxes or Operating Income- Int Less Interest Paid EBT Earnings before taxes- taxes Less Income Taxes EAT Earnings after Taxes or Net Income EAT / Number of shares of Common Stock Outstanding = EPS In algebraic form: EPS = [(Rev Exp Int)(1-t)] / (number of shares of common stock outstanding) where t is the marginal tax rate 2. Simplified Balance Sheet: Assets Liabilities Short-term assets Short-term liabilities Long-term assets Long-term liabilities Stockholders Equity: Common stock at par Additional paid in capital Retained earnings . Total Assets Total liabilities and stockholders equity 3. Types of financial statements commonly found in annual reports: 1. Income statement 2. Balance sheet 3. Statement of cash flows 4. Statement of retained earnings Statements 2 and 5 are True...
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This note was uploaded on 02/13/2011 for the course FINA 3332 taught by Professor Darlachisholm during the Spring '08 term at University of Houston.
- Spring '08