[Discussion] - 2

[Discussion] - 2 - [ASSET USE EFFICIENCY] PM = NI / SALES...

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Chapter 2: Business Relationships Cash Accounts Payable Fixed Assets Inventory Intellectual Property Others Owners
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Chapter 2: Balance Sheets Assets Cash A/R Inventory roperty Liabilities A/P LT Liabilities uity 10 10 10 0 10 10 Property IP __________________ Total Assets Equity Common Stock Preferred Stock Total Equity + Liabilities 10 10 50 30 0 50
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Chapter 2: Income Statements
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Chapter 2: Income Statements Sales Cost of Goods Sold________ Gross Profit OPEX___________________ 100 10 90 10 EBITDA INT TAX_____________________ NI 80 0 10 70
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Financial Ratio Profit Margin t Comparing two values to get “more” information Gross Margin
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DUPONT IDENTITY ROE = TAT * PM * EM EM = TA/TE [FINANCIAL LEVERAGE] TAT = SALES/TOTAL ASSETS
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Unformatted text preview: [ASSET USE EFFICIENCY] PM = NI / SALES [OPERATING EFFICIENCY] P/E RATIO Q. If I have 1,000,000 shares outstanding, and $1.00/share earnings, with a P/E ratio of 5, what are the worth of my stocks? (Price/Share)/(Earnings/Share) (Price/Share)/(Earnings/Share)=5 (Price/1e6)/(1.00)=5 External Financing Needed t Pro-Forma Balance Sheet & Income Statement t Internal Growth Rate ) 1 ( Sales) Projected ( Sales Sales Liab Spon Sales Sales Assets d PM- -- OA t Sustainable Growth Rate b ROA-1 b ROA b ROE-1 b ROE...
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[Discussion] - 2 - [ASSET USE EFFICIENCY] PM = NI / SALES...

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