Capital Budgeting Flashcards
After-Tax Annual Cash Flows =
Free Cash Flow =
Accounting Rate of Return =
Compound Interest & Present Value/Future Value =
An ordinary annuity is …..
An annuity due is …..
Net Present Value (NPV) =
Depreciation Tax Shield =
Operating lease relevant cash flows =
Finance lease and purchase of the asset by borrowing =
Payback Period =
Profitability Index =
Capital Budgeting Assessment Tools
Degree of Operating Leverage (DOL) =
Degree of Financial Leverage (DFL) =
Earning per share (EPS) =
Degree of Total Leverage (DTL) =
Common Stock Valuation =
Dividend Growth Model =
Required Rate of Return =
Dividend Discount Growth Model =
Preferred Stock Valuation =
Preferred Stock Price =
Dividend Payout Ratio =
Dividend Yield =
Shareholder Return =
Times-interest-earned ratio =
Total debt ratio =
Total-debt-to-total-capital ratio =
Debt-to-equity ratio =
Long-term-debt-to-total-equity ratio =
Cost of long term debt =
Cost of preferred stock (old) =
Cost of preferred stock (new) =
Cost of common equity (basic) =
Cost of common equity (advanced) =
Weighted-Average Cost of Capital (WACC) =
