Test 2 - Extra Formulas

Question 1

Equity Value =

Answer 1

Average (Price/Sales) x Forecast Sales

Question 2

Enterprise Value =

Answer 2

Market Cap + Total Debt

Question 3

Market Cap =

Answer 3

Stock Price x # of Shares

Question 4

Max Price Per Share =

Answer 4

(PV for each year + PV of TV - Debt)/# of shares

Question 5

Terminal Value =

Answer 5

(Last CF * New Growth Rate)/(Cost of Cap - New Growth Rate)

Question 6

Equity =

Answer 6

PV - Debt

Question 7

Cost of Debt =

Answer 7

Treasury + Bond Rating

Question 8

Cost of Equity =

Answer 8

Treasury + (Risk Premium * Beta)

Question 9

Cost of Capital =

Answer 9

(Cost of Debt)(1-T)(Debt/Debt+Equity) + (Cost of Equity)(Equity/Debt+Equity)

Question 10

Market Value Added =

Answer 10

of Shares * Stock Price - # of Shares * Book Value

Question 11

Economic Profits =

Answer 11

Accounting Profits - Capital Charge

Question 12

Capital Charge =

Answer 12

Capital Investment * Cost of Capital

Question 13

Operating Efficiency =

Answer 13

Total Capital/Sales

Question 14

Return on Sales =

Answer 14

((Revenues - Expenses)/Revenues) * (Tax Rate)

Question 15

NPV (Excel) =

Answer 15

(Cost of Capital, Cash Flows)

Question 16

Terminal NPV =

Answer 16

TVal/(1+g)^t

Question 17

Total NPV =

Answer 17

Terminal NPV + FCF

Question 18

Market Value =

Answer 18

CF(1+g)/(WACC-g)

Question 19

Rate (Excel) =

Answer 19

NPER, , PV, FV

Question 20

Share Price(Stock Price) =

Answer 20

Div/(Rate of Return - Growth Rate)

Question 21

PV =

Answer 21

(Rate, NPER, PMT, FV)

Question 22

Constant Growth Stock Price =

Answer 22

Div/r-g

Question 23

PV (Stock Price) =

Answer 23

Future Price/r^t