{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FIN 380 Notecard Ch 2,3,4 - CHAPTER 2 EBT = NI(1-tax rate...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 2 EBT = NI / (1-tax rate) EBIT = EBT + Interest EBIT = sales – costs - depr Total Liabilities and owners equity--------TL & OE = CL + LTD + Common stock + Retained earnings NI = dividends + addition to retained earnings CFFA = cash flow to creditors + cash flow to stockholders Cash flow to creditors = interest paid – net new borrowing Cash flow to stockholders = dividends paid – net new equity raised CFFA= OCF – NCS – change in NWC OCF = EBIT + depr – taxes EBIT = sales – costs - depr NCS = ending net fixed assets – beginning net fixed assets + depr Changes in NWC = end NWC – beg NWC Avg tax rate = total tax / taxable income Marginal tax rate is the tax rate on the next $1 of earnings
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
CHAPTER 3 Net income = Addition to RE + Dividends Earnings per share = NI / Shares Dividends per share = Dividends / Shares Book value per share = TE / Shares Market-to-book ratio = Share price / BVPS P/E ratio = Share price / EPS Sales per share = Sales / Shares P/S ratio = Share price / Sales per share ROE = (NI/sales)(Sales/TA)(TA/TE) ROE = (PM)(TAT)(EM) EM = 1 + D/E ROE = (ROA)(EM)
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern