Extra Credit (10 Pts)

Question 1

EBT Equation

Answer 1

Sales - Costs - Depreciation - Interest Expenses = EBT

Question 2

How to find the OCF (two ways)

Answer 2

EBIT -> EBT -> EAT -> OCF

EBIT -> OCF

Question 3

OCF equation with EAT

Answer 3

EAT + Depreciation + Interest = OCF

Question 4

OCF equation with EBIT

Answer 4

EBIT + Depreciation - Taxes = OCF

Question 5

EAT equation

Answer 5

EBT - (EBT * Taxes) = EAT

Question 6

EBIT Equation

Answer 6

Sales - Costs - Expenses - Depreciation = EBIT

Question 7

Cash Flows from Assets Equation

Answer 7

OCF - Change in NWC - Net Capital Spending = Cash Flow from Assets

Question 8

Net Capital Spending Equation

Answer 8

(2021-2020) + Depreciation = Capital Spending

Question 9

Retained Earnings Equation

Answer 9

EAT - Dividends = Retained Earnings

Question 10

EPS & DPS Equation

Answer 10

EAT/Shares of common stock = EPS

Paid in Dividends/Shares of common stock = DPS

Question 11

Average Tax Rate Equation

Answer 11

Taxes paid/Taxable income = Average Tax Rate

Question 12

Income subject to marginal tax Equation

Answer 12

Taxable income - lowest taxable income = Income subject to marginal tax