Corporate finance Flashcards
1
Q
Vs?
A
Vf - Vb
2
Q
Rs
A
Cf shareholders / Vs
3
Q
WACC (short)
A
Pre-int CF / Vf
4
Q
WACC (long)
A
(Vs/Vf) x Rs + (Vb/Vf) x Rn
5
Q
Vf?
A
Pre int CF/ WACC
6
Q
Vb?
A
Debt ratio x Vf
7
Q
CF stockholder?
A
Pri CF - interest x Vb
8
Q
ARR?
A
Average Profit / Average investment %
9
Q
NPV?
A
PV of cash flows - initial inv CF
10
Q
IRR?
A
Discount rate %; NPV =0
11
Q
Payback period?
A
Initial investment / Annual Cash Flow
12
Q
Average inv %?
A
Sum + Scrap Value/2
13
Q
Pip?
A
(Issues pp share x existing n shares) + (new price p share x new share) // estimating n shares + new shares
14
Q
Gain?
A
New shares x (pip - issue price) = +
15
Q
Lose?
A
Old shares x (pip - old price) = -
16
Q
Value of a right?
A
Old/new
