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Exam 3 EQN - = VL CF to SHke CF to BHkp Chapter 14 EBIT-EPS...

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Exam 3 Equations Chapter 8 Zero Growth = P0 DKe Constant Growth  = - P0 D1Ke g Non-Constant (multi-stage) Growth = = + + + - P0 t 1mDt1 kt Dm 1Ke + g1 Kem Chapter 9 Net After-Tax Cash Flows - = - - - + NCF1 n ΔR ΔO ΔD1 t ΔD Chapter 10 Net Present Value = = + - NPV t 1nNCFt1 kt NINV Internal Rate of Return (IRR) = + = t 1nNCFt1 rt NINV Profitability Index  = = + PI t 1nNCFt1 ktNINV Chapter 12 Weighted Average Cost of Capital (WACC) = - + + Ka wDKD1 t wpKp weKe Cost of Preferred Stock  = Pnet DpKp Internal Equity: Discounted Cash Flow Method  (DCF) = - P0 D1Ke g Internal Equity: CAPM Method  = + + ke rf βrm rf Breaking Point = BP Retained EarningsWe WACC (k a ) = - + + + Ka wDKD1 t wpKp wreKre wneKne Chapter 13 Preferred Capital Market w/o Tax = VL Vu Preferred Capital Market w/ tax = + ( ) VL Vu t D PCM in the Real World VL=Vu+tD-PVagency Cost-PV(cost of financial distress) Value of Unleveraged Firm = Vu CF to SHke Value of Leveraged Firm = + VL
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Unformatted text preview: = + VL CF to SHke CF to BHkp Chapter 14 EBIT-EPS Analysis-- -=-- -EBIT IntD1 t DpnD EBIT IntE1 t DpnE Chapter 15 Payout Ratio DividnedsNet Income Exam 3 Equations Retention Ratio =Retained EarningsNet Income = 1-Payout Ratio Post-Stock Dividend Price per Share Pre-stock Dividend Price1+%dividend P0=DKe P0=D1Ke-g P0=t=1mDt1+kt+Dm+1Ke-g1+Kem NCF1-n=ΔR-ΔO-ΔD1-t+ΔD t=1nNCFt1+kt-NINV = + = t 1nNCFt1 rt NINV = + t 1nNCFt1 ktNINV Ka=wDKD1-t+wpKp+weKe Pnet=DpKp P0=D1Ke-g ke=rf+βrm+rf Retained EarningsWe =-Ka wDKD1 + + + t wpKp wreKre wneKne VL=Vu VL=Vu+t(D) = +- - ( VL Vu tD PVagency Cost PV cost ) of financial distress VL=CF to SHke Vu=CF to SHke+CF to BHkp EBIT-IntD1-t-DpnD=EBIT-IntE1-t-DpnE = DividendsNet Income,. =Retained EarningsNet Income = 1-Payout Ratio = Pre-stock Dividend Price1+ %dividend...
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