FRL 300 Formula Sheet

FRL 300 Formula Sheet - FRL 300 Final Exam Formula sheet...

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FRL 300 Final 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 ( 29 1 1/ 1
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FRL 300 Formula Sheet - FRL 300 Final Exam Formula sheet...

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