{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Finance Formula

Finance Formula - V = E D E/V = percentage of financing...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Free Cash Flow Formula FCF = sales revenues -operating costs -operating taxes -required investments in operating capital Weight Average Cost of Capital Formula Where:  Re = cost of equity  Rd = cost of debt  E = market value of the firm's equity  D = market value of the firm's debt 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: V = E + D E/V = percentage of financing that is equity D/V = percentage of financing that is debt Tc = corporate tax rate Intrinsic Value Formula Value =FCF1/ (1 + WACC)1 + FCF2/(1 + WACC)2 + FCF∞/(1 + WACC)∞...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online