BM 201 Final Exam Supplemental Study Guide

BM 201 Final Exam Supplemental Study Guide -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

BM 201 Final Exam Supplemental Study Guide -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online