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

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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
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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
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This note was uploaded on 09/27/2011 for the course FINANCE 380 taught by Professor E.c during the Spring '10 term at Missouri State University-Springfield.

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

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