financial management theory Flashcards
1
Q
cash flow before interest
A
cash flow of shareholders + cash flow to debtholders
2
Q
value of the firm
A
value of the equity + value of the debt
3
Q
value of the firm
A
cash flow before interest / weighted average cost of capital
4
Q
value of the equity
A
cash flow to shareholder / required rate on equity
5
Q
value of the debt
A
cash flow to debtholder/ required rate on debt
6
Q
Vf
A
Value of the firm
7
Q
Vs
A
Value of the equity
8
Q
Vb
A
value of the debt
9
Q
Rs
A
Required rate on equity
10
Q
Rb
A
required rate on debt
11
Q
WACC
A
weighted average cost of capital
12
Q
CFf
A
cash flow before interest
13
Q
Cfs
A
cash flow to shareholders
14
Q
CFb
A
cash flow to debtholders
15
Q
WACC formula
A
(Vs/Vf) x Rs + (Vb/Vf) x Rb
16
Q
cff formula
A
CFs + CFb
17
Q
Vf formula
A
Vs + Vb
18
Q
Vf formula
A
CFr/WACC
19
Q
Vs formula
A
CFs/ Rs
20
Q
Vb formula
A
CFb / Rb
21
Q
A
