Advance Finance Cheat Sheet

Advance Finance Cheat Sheet - C(R A PVTS PVTS=T C D Sales...

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R E = R A +D/E (R A -R D )(1-T C ) R A =R U R i = R f + B i (R M -R f ) MRP= (R M -R f ) No Taxes: V L =V U R E = R u +(R u -R D )(D/E) With Taxes: V L =V U + T c D R E = R u +(R u -R D )(D/E)(1-T c ) WACC= (E/V)R E +(D/V)R D (1-T C ) If leverage Changes so does cost of Equity, Cost of Debt B E = B A +(B A -B D )(D/E)(1-T c ) Always Average Beta of Assets not Beta of Equity V L = (FCF(1-T C ))/(WACC) V L = (FCF(1-T
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Unformatted text preview: C ))/(R A )+PVTS PVTS=T C D Sales Growing Perp.=FCF(1+G)/(WACC-G)-Costs of Goods Sold EBITDA=Sales-Costs of Goods Sold-Depreciation EBIT-Taxes =(T C )(Ebit) EBIT(1-T C ) + Depreciation-Capital Expenditure- Increase in Working Capital Free Cash Flows...
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