Leverage Flashcards
1
Q
ROE with ROA
A
(1-t) [ROA +(ROA - COD)* D0/E0]
COD=Interest expense1/Total liabilities0
2
Q
COD
A
Interest expense1/Total liabilities0
3
Q
ROE with ROCE
A
(1-t)[ROCE +(ROCE-Rd) * Dib0/E0]
Rd=Interest expense1/Dib0
4
Q
Rd
A
Interest expense1/Dib0
5
Q
ROE with RONA
A
(1-t)[RONA +(RONA - Rnd) * ND0/E0]
Rnd=(Interest expense-Financial Income1)/Net Debt0
Net debt = Dib - Financial assets = Dib-(cash & cash eq. +marketable sec.)
6
Q
Rnd
A
Rnd=(Interest expense-Financial Income1)/Net Debt0
7
Q
Net debt
A
Net debt = Dib - Financial assets = Dib-(cash & cash eq. +marketable sec.)