BM 201 Final Exam Supplemental Study Guide

# BM 201 Final Exam Supplemental Study Guide - :Fall2011...

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Leverage: DCL =                                  (Price –Variable Costs)*Quantity                                                 (Price – Variable Costs)*Quantity – Fixed Costs – Interest Expense DCL Condensed Formula:   __(P-V)*Q__ (P-V)*Q - F- I  Breakeven:  ___Total Fixed Costs___ Unit Contribution Margin Contribution Margin:  Sales Price – Variable Costs Sales Price DOL = Sales –VC     EBIT DOL =    Q*(P-V)              Q*(P-V) – F Preferred Stock Calculations: Cost of PS = PS Dividend PS Price  Gordon Growth Model: D 1 = D 0 *(1+g) P 0 =    __D 1 _ R-g Cost of CS = _D 1 _    + g             P 0 WACC*: *Notice that ONLY debt considers taxes.  Therefore, the before-tax and after-tax cost of preferred stock and  common stock would be the same. CAPM:

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## This note was uploaded on 01/04/2012 for the course BUSM 201 taught by Professor Jennlarson during the Fall '11 term at BYU.

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BM 201 Final Exam Supplemental Study Guide - :Fall2011...

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