FINA3310_Final_Formula Sheet - FORMULA SHEET FOR FINAL...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
FORMULA SHEET FOR FINAL Average tax rate = total taxes due/taxable income Return on assets or ROA=net profit margin x total asset turnover = earnings available to common shareholders/total assets Return on equity or ROE = net profit margin x total asset turnover x financial leverage multiplier = ROA x financial leverage multiplier = earnings available for common shareholders/ common stock equity () 11 Ordinary Annuities : ; ; 1 nn n rr PV PMT FV PMT r ⎛⎞ +− == ⎜⎟ + ⎝⎠ Annuities Due: 1 ; 1 ; 1 n PV PMT r FV PMT r r =+ + Bonds : n YTM FV PV PMT YTM YTM YTM ⎡⎤ ⎢⎥ ++ ⎣⎦ () () () 2 1 22 2 ,, :; ; 1 ; ; ; 2w h e r e n ii M i i i p A A B B P A A B B i p AA BB ABA B A B A BAB SM LR r f R r f w ER wER w w ww w w β σσ σσσ σ ρ = = = = + = + =++ = Initial Investment=Initial (installed) cost of new asset - after tax proceeds from sale of old assets± Δ NWC=Initial (installed) cost of new asset - ATSV OLD ± Δ NWC o Annual depreciation at year t = initial cost x MACRS rate for year t o Initial cost=purchase price + installation costs;
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/02/2011 for the course FINA 3310 taught by Professor Staff during the Spring '08 term at Texas A&M University, Corpus Christi.

Ask a homework question - tutors are online