Leverage Flashcards

1
Q

ROE with ROA

A

(1-t) [ROA +(ROA - COD)* D0/E0]

COD=Interest expense1/Total liabilities0

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2
Q

COD

A

Interest expense1/Total liabilities0

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3
Q

ROE with ROCE

A

(1-t)[ROCE +(ROCE-Rd) * Dib0/E0]

Rd=Interest expense1/Dib0

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4
Q

Rd

A

Interest expense1/Dib0

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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.)

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6
Q

Rnd

A

Rnd=(Interest expense-Financial Income1)/Net Debt0

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7
Q

Net debt

A

Net debt = Dib - Financial assets = Dib-(cash & cash eq. +marketable sec.)

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