Formula Book FIN 2210

0 183 223 340 340 343 350 350 c 1 c 2 appendix c

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Unformatted text preview: ss over the Base (Marginal Rate) 15% 25 34 39 34 35 38 35 Average Tax Rate at Top of Bracket 15.0% 18.3 22.3 34.0 34.0 34.3 35.0 35.0 C-1 C-2 Appendix C Selected Equations and Tables C HAPTER 4 Current ratio = Current assets Current liabilities Quick ; or acid test, ratio = Inventory turnover = Current assets − Inventories Current liabilities Sales Inventories Receivables Receivables Days sales ðDSOÞ = = outstanding Average sales per day Annual sales=365 Sales Net fixed assets Sales Total assets turnover = Total assets Fixed assets turnover = Debt ratio = Total debt Total assets Debt-to-capital ratio = Total debt Debt = Total capital Debt + Equity Debt-to-equity ratio = Total debt Debt = Total equity Equity Times-interest-earnedðTIEÞ = D=E = EBIT Interest charges D=A D=E and D=A = 1 − D=A 1 + D=E EBITDA coverage = EBITDA + Lease payments Interest + Principal payments + Lease payments Operating profit margin = Profit margin = EBIT Sales Net income Sales Return on total assets ðROAÞ = Basic earning power ðBEPÞ = Net income Total assets EBIT Total assets EBITð1 − TÞ EBITð1 − TÞ = Total capital Debt + Equity Net income Return on common equity ðROEÞ = Common equity Return on investors’ capital ðROICÞ = Price=Earnings ðP=EÞ = Price per share Earnings per share Book value per share = Common equity Shares outstanding Market price per share Book value per share ROE = ROA  Equity multiplier = Profit margin  Total assets turnover  Equity multiplier Net...
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This document was uploaded on 02/09/2014.

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