Test 2 - Extra Formulas Flashcards
Equity Value =
Average (Price/Sales) x Forecast Sales
Enterprise Value =
Market Cap + Total Debt
Market Cap =
Stock Price x # of Shares
Max Price Per Share =
(PV for each year + PV of TV - Debt)/# of shares
Terminal Value =
(Last CF * New Growth Rate)/(Cost of Cap - New Growth Rate)
Equity =
PV - Debt
Cost of Debt =
Treasury + Bond Rating
Cost of Equity =
Treasury + (Risk Premium * Beta)
Cost of Capital =
(Cost of Debt)(1-T)(Debt/Debt+Equity) + (Cost of Equity)(Equity/Debt+Equity)
Market Value Added =
of Shares * Stock Price - # of Shares * Book Value
Economic Profits =
Accounting Profits - Capital Charge
Capital Charge =
Capital Investment * Cost of Capital
Operating Efficiency =
Total Capital/Sales
Return on Sales =
((Revenues - Expenses)/Revenues) * (Tax Rate)
NPV (Excel) =
(Cost of Capital, Cash Flows)
Terminal NPV =
TVal/(1+g)^t
Total NPV =
Terminal NPV + FCF
Market Value =
CF(1+g)/(WACC-g)
Rate (Excel) =
NPER, , PV, FV
Share Price(Stock Price) =
Div/(Rate of Return - Growth Rate)
PV =
(Rate, NPER, PMT, FV)
Constant Growth Stock Price =
Div/r-g
PV (Stock Price) =
Future Price/r^t
