Midterm 1 Formula Sheet

Midterm 1 Formula Sheet - Net capital spending =...

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Midterm 1 Formula Sheet Times Interest Earned = EBIT/Interest Exp Cash Coverage = EBITDA/Interest Exp Inventory Turnover = COGS/Inventory Days’ Sales in Inventory = 365/Inventory Turnover Receivables Turnover = Credit Sales/(A/R) Days’ Sales in Receivables = 365/Receivables Turnover Payables Turnover = COGS/(A/P) Days to Pay Suppliers = 365/Payables Turnover Internal growth rate = [(ROA)(b)] / [1 – (ROA)(b)] Sustainable growth rate = [(ROE)(b)] / [1 – (ROE)(b)] LTD = L – CL Long-Term Debt Ratio = LTD/(LTD + E) Average Tax Rate = Tax Exp/Taxable income Operating Cash Flow = OCF = NI + Dep + Int Exp = EBIT + Dep – Tax Exp Cash flow to creditors = Interest paid – Net new borrowing Cash flow to stockholders = Dividends paid – Net new equity
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Unformatted text preview: Net capital spending = Depreciation + Increase in fixed assets Cash flow from assets = Cash flow to creditors + Cash flow to stockholders Cash flow from assets = OCF NWC Net capital spending PV = FV/(1 + r) t FV = PV(1 + r ) t r = (FV / PV) 1 / t 1 t = ln(FV / PV) / ln(1 + r ) PVA = C(PVAF) = C ({1 [1/(1 + r) ] t } / r ) C = PVA/PVAF FVA = C(FVAF) = C {[(1 + r) t 1] / r } C = FVA/FVAF APR = (Periodic Rate)( m ) APR = m [(1 + EAR) 1/ m 1] EAR = [1 + (APR / m )] m 1 (1 + R Nom ) = (1 + R Real )(1 + i) (Be able to solve for R Nom , R Real or i) (1 + R Nom ) = (1 + R Real )(1 + h) (Be able to solve for R Nom , R Real or h)...
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This note was uploaded on 12/04/2011 for the course ECON 1000 taught by Professor Awwwwww during the Spring '11 term at UC Riverside.

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