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Formula_Sheet_9_11_14_16

# Formula_Sheet_9_11_14_16 - (10 times interest earned...

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Finance 3101 Formulas (Brooks’ Financial Management , Chapters 9, 11, 14, 16) (1) NPV = -CF0 + CF1/(1 + r) 1 +CF2/(1 + r) 2 +CF3/(1 + r) 3 + … +CFn/(1 + r) n (2) IRR: \$0 = -CF0 +CF1/(1 + r) 1 +CF2/(1 + r) 2 +CF3/(1 + r) 3 + …+CFn/(1 + r) n (2a) Profitability Index = Cash Inflows/Cash Outflows (3) price = coupon *[1 – 1/(1 + YTM) n ]/YTM + par value /(1 + YTM) n (4) Rps =dividend/net price (5) Re = E(r) = rf + [E(rm) - rf]bi (6) Re = [Div1/P0(1-F)] + g (7) after-tax cost of debt = Rd * (1 - Tc) (8) WACCadj = E/V* Re +PS/V* Rps +D/V* Rd * (1 - Tc) (9) current ratio =current assets/current liabilities

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Unformatted text preview: (10) times interest earned =EBIT/interest expense (11) total asset turnover =sales/total assets (12) profit margin =net income/sales (13) ROA =net income/total assets (14) ROE =net income/total owners’ equity (15) earnings per share =net income/number of outstanding shares (16) price earnings ratio =price per share/earnings per share (17) PEG Ratio = price earnings ratio/earnings growth rate (18) ROE = (net income/sales)*(sales/total assets)*(total assets/total equity) (19) EPS = (EBIT – Interest Expense – Taxes)/ Shares Outstanding...
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Formula_Sheet_9_11_14_16 - (10 times interest earned...

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