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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=R-O-D1-t+D t=1nNCFt1+kt-NINV = + = t 1nNCFt1 rt NINV = + t 1nNCFt1 ktNINV Ka=wDKD1-t+wpKp+weKe Pnet=DpKp P0=D1Ke-g ke=rf+rm+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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This note was uploaded on 09/28/2011 for the course FINA 3332 taught by Professor Darlachisholm during the Spring '08 term at University of Houston.
- Spring '08