Formulas Flashcards
Total borrowings
Amount Needed / (1 - Stated Rate)
Effective Rate w. Comp Balance
Stated Rate / (1 - Comp Balance %)
Free Cash Flow
Operating CF - Net Capital Expenditure - Net Change in WC
Market Risk
(Rm- Rf)
Security Risk
Beta(Rm - Rf)
DOL
%change EBIT / %change Sales
DFL
%change EPS / %change EBIT
DTL
%change EPS / %change Sales
Dividend Growth Model
(Dividends/Share Next Year) / (Discount Rate - Growth Rate)
Required Rate of Return (cs)
(Dividends/Share Next Year) / (current stock price/share) + Growth Rate
Dividend Payout Ratio
Dividend/Share / EPS
Cash Dividend / NI
Dividend Yield
(Dividend/Share) / (Market Price/Share)
Times Interest Earned Ratio
EBIT / Interest Expense
A/R Turnover
Net Credit Sales / Avg A/R
Days’ Sales in Receivables
Ending A/R / (Net Credit Sales/days in year)
Inventory Turnover
COGS / Avg Inv
Days’ Sales in Inv
Ending Inv / (COGS/days in year)
A/P Turnover
COGS / Avg A/P
Avg Payable Period
Ending A/P / (COGS/days in year)
Not taking discount
(Discount% / 100 - discount%) *
(Days in year / (total payment period - discount period))
EUP Weighted Avg Method
Total Units Completed + (Ending WIP * % completed)
Weighted Avg Cost Per EUP
(Beg WIP + Current period costs) / weight avg EUP
EUP Under FIFO
(Beg. WIP * % left to complete)
+ Units started and completed
+ (End WIP * % completed)
FIFO Cost / EUP
Current Period Costs / FIFO EUP
