Formules

Question 1

CAPM formule

Answer 1

E(ri) = rf + Bim(E(rm)-rf)

Question 2

CAPM - wat betekent E(ri)

Answer 2

expected return of capital of asset i

Question 3

CAPM - wat betekend rf

Answer 3

return on risk-free asset

Question 4

CAPM - wat betekend Bim

Answer 4

beta (risk of portfolio)

Question 5

CAPM - wat betekent rm

Answer 5

market risk premium

Question 6

CAPM - what is the goal of the model?

Answer 6

show how the market price of an individual asset must be valued in comparison to the total market

Question 7

CAPM - what does it predict?

Answer 7

the risk of assets

Question 8

CAPM - what is it used for?

Answer 8

calculate price and asset of portfolio

Question 9

CAPM - what is the intuition behind it?

Answer 9

spread risk in someone’s investment portfolio

Question 10

Tobin’s Q - what does it measure

Answer 10

a firm’s assets in relation to a firm’s market value

Question 11

ROI - formula

Answer 11

net profit/cost of investment*100%

Question 12

Residual value - formula

Answer 12

prepetuity of cash flow/cost of capital

Question 13

Residual value - what does it indicate

Answer 13

the estimated value of a fixed asset at the end of its lease term or useful life

Question 14

Working capital - formula

Answer 14

current assets - current liabilities

Question 15

Working capital - what does it indicate

Answer 15

the capital of a business which is used in its day-to-day trading operations

Question 16

Economic profit - formula

Answer 16

invested capital*(ROI capital - weighted average cost of capital)

Question 17

EVA - formula

Answer 17

NOPAT - (WACC*capital invested)

Question 18

EVA - what is NOPAT

Answer 18

net operating profit after tax

Question 19

EVA - what is WACC

Answer 19

weighted average costs of capital (required rate of return)

Question 20

EVA - what is capital invested

Answer 20

the book value of net capital at the beginning of the period

Question 21

EVA - what does it do

Answer 21

• go from accounting number to CF number
• expected earnings of investment
• what to do for investment
• wanted return of investment

Question 22

REVA - what is it

Answer 22

similar to EVA but capital invested is based on market value

Question 23

difference EVA and REVA

Answer 23

• EVA more backward looking
• REVA more about the present and future
• EVA more useful for board members
• REVA more useful for investors

Question 24

Tobin’s Q - calculation

Answer 24

total market value/total asset value

Question 25

basic CLV model - formule

Answer 25

m1i (k1+d)

Question 26

basic CLV model - what is m1i

Answer 26

constant net margin

Question 27

basic CLV model - what is k1

Answer 27

discount rate

Question 28

basic CLV model - what is d

Answer 28

defection rate

Question 29

CLV including upselling - what is added

Answer 29

• (““+gi)
• individual growth rate

Question 30

CLV including acquiring new customers - NCLV - what is added

Answer 30

• [””]-ai
• acquisition costs of individual i

Question 31

CLV - model what does it do

Answer 31

• it measures the customer lifetime value
• customers are risky assets so it is important to know how long they will be loyal to the organization

Question 32

CE - formula

Answer 32

CE = NCLVj + CLVi

Question 33

CE - what does it do

Answer 33

• customer equity is the aggregation of the expected lifetime values.
• based on existing and newly acquired customers