Cong thuc - CHAPTER 3 Stockholders equity = Paid-in capital...

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CHAPTER 3 Stockholders’ equity = Paid-in capital + Retained earnings Stockholders’ equity = Total assets – Total liabilities Net working capital = Current assets – (Payables Accruals) Operating income (EBIT) = Sales revenues - Operating costs Earnings per share = EPS = Net income/ Common shares outstanding Dividends per share = DPS = dividends paid to common stockholders/ Common shares outstanding Free Cash Flow: FCF = EBIT(1 – T) + Depreciation – [(Capital expenditures + Increase in net working capital)] A – T income = B – T income(1 –T) Pretax income needed to pay $1 of dividends = $1/(1 – Tax rate) CHAPTER 4 Current ratio = Current assets/ Current liabilities Quick, or acid test, ratio = (Current assets – Inventories)/ Current liabilities Inventory turnover ratio = Sales/ Inventories Days sales outstanding (DSO) = Receivables/ Average sales per day = Receivables/ Annual sales/365 Fixed assets turnover ratio = Sales/ Net fixed assets Total assets turnover ratio = Sales/ Total assets Debt ratio = Total debt/ Total assets
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