formula

# formula - ActSc 371: Final Exam Cheat Sheet This will be...

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

ActSc 371: Final Exam Cheat Sheet This will be provided on the exam: DO NOT BRING THIS SHEET WITH YOU TO THE EXAM Geometric series. If | s | < 1, then 1 + s + s 2 + s 3 + ... = 1 1 - s Annuity formula A n r = 1 1 + r + 1 (1 + r ) 2 + ... + 1 (1 + r ) n = 1 r ± 1 - (1 + r ) - n ² Turnover ratio = Assets/Sales Debt-equity ratio = Liabilities/Equity Payout ratio = Dividends/(Net Income) Proﬁt margin = (Net Income)/Sales External Funding Needed ³ Assets Sales - Debt Sales ´ ΔSales - ( p · Projected Sales)(1 - d ) New equity required S 0 µ g T 1 + D - p (1 - d )(1 + g ) Sustainable growth rate g 0 = (1 + D ) p (1 - d ) T - (1 + D ) p (1 - d ) 1

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

View Full Document
Growth rate in earnings g = (1 - payout ratio)(return on reinvested earnings) = (retention ratio)(return on reinvested earnings) Present value of CCA tax shield
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 11/02/2011 for the course ACTSC 371 taught by Professor Wood during the Fall '08 term at Waterloo.

### Page1 / 3

formula - ActSc 371: Final Exam Cheat Sheet This will be...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online