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46 Cards in this Set
- Front
- Back
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ROI |
INCOME / INVESTMENT CAPITAL OR PROFIT MARGIN x INVESTMENT TURNOVER |
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ROA |
NET INCOME / AVERAGE TOTAL ASSETS |
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ROE |
(NET INCOME - PREFFERED DIVIDEND) / TOTAL EQUITY |
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NET PROFIT MARGIN |
NET INCOME / SALES |
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ASSET TURN OVER RATIO |
SALES / AVERAGE TOAL ASSETS |
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FINANCIAL LEVERAGE |
AVERAGE TOTAL ASSETS / EQUITY |
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DUPONT ROE |
NET PROFIT MARGIN x ASSET TURN OVER x FINACIAL LEVERAGE |
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TAX BURDEN |
NET INCOME / PRETAX INCOME |
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INTEREST BURDEN |
PRETAX INCOME / EBIT |
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OPERATING INCOME MARGIN |
EBIT / SALES |
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DUPONT ROE |
TAX BURDEN x INTEREST BURDEN x OPERATING INCOME MARGIN x ASSET TURNOVER x FINANCIAL LEVERAGE |
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RESIDUAL INCOME |
NET INCOME - REQUIRE RATE OF RETURN |
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REQUIRE RATE OF RETURN |
NET BOOK VALUE x HURDLE RATE |
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STEPS FOR ECONOMIC VALUE ADDED |
1. REQUIRED RETURN = INVESTMENT x COST OF CAPITAL 2. COMPARE INCOME TO REQUIRE RATE OF RETURN EVA = NET OPP PROFIT AFTER TAX - REQUIRED RATE OF RETURN |
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DEBT TO FINANCIAL CAPITAL |
TOTAL DEBT / TOTAL CAPITAL *TOTAL CAPITAL = DEBT + EQUITY |
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DEBT TO ASSET |
TOTAL DEBT / TOTAL ASSETS |
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DEBT TO EQUIY |
DEBT / TOTAL SHAREHOLDERS EQUITY |
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TIMES INTEREST EARNED |
EBIT / INTEREST EXPENSE |
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CURRENT RATIO |
CURRENT ASSETS / CURRENT LIABILITY |
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QUICK OR ACID TEST RATIO |
(CASH + MARKETABLE SEC. + REC.) / CURRENT LIABILITIES |
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APR OF QUICK PAYMENT DISCOUNT |
(360 / (PAY PERIOD- DISCOUNT PERIOD)) x (DISCOUNT / (100- DISCOUNT %) |
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CASH CONVERSION CYCLE |
INV. CONV. PER. + REC. COLLET PER. - PAYABLE DEFERRAL. PER. |
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INVETORY TURN OVER |
COGS / AVERAGE INVENTORY |
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INVENTORY CONVERSION |
365 / INVENTORY TURN OVER |
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ACCOUNTS RECEIVABLES TURNOVER |
COGS / AVG. ACC. RECEIVABLES |
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ACCOUNT REC. COLLECTION PERIOD |
356 / ACCOUNTS REC. TURNOVER |
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ACCOUNTS PAYABLE TURNOVER PERIOD |
COGS / AVERAGE ACCOUNTS PAYABLE |
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ACCOUNTS PAYABLE DEFFER PERIOD. |
365 / ACCOUNT PAYABLE TURNOVER |
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RE ORDER POINT |
SAFETY STOCK + (LEAD TIME x SALES DURING LEAD TIME) |
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EOQ (ECONOMIC ORER QUANTITY |
SQRT(2 x S x O / C) E- ORDER SIZE S- ANNUAL SALES IN UNITS O- COST PER PURCHASE ORDER C- CARRYING COST PER UNIT |
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AFTER TAX CASH FLOWS |
PRETAX CASH FLOWS (1 - TAX RATE) |
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AFTER TAX COST OF DEBT |
PRETAX COST OF DEBT (1 - TAX RATE) |
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COST OF PREFERRED STOCK |
PREFERRED STOCK DIVIDENDS / NET PROCEEDS OF PREFERRED STOCK |
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COST OF RETAINED EARNINGS- METHOD 1 (CAPM) CAPITAL ASSET PRICING MODEL |
RISK FREE RATE + (BETA (MARKET RETURN - RISK FREE RATE) |
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COST OF RETAINED EARNINGS- METHOD 2 (DCF) DISCOUNTED CASH FLOWS |
(D1 / P0) + G D1- DIVIDEND PER SHARE EXPECT YEAR END P0- CURRENT VALUE OF COMMON STOCK G- CONSTANT GROWTH RATE OF DIVIDEND |
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COST OF RETAINED EARNINGS- METHOD 3 (BYRP) BOND YIELD + RISK PREMIUM |
PRETAX LONG TERM DEBT + MARKET RISK PREMIUM |
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DEPRECIATION TAX SHIELD |
DEPRECIATION x TAX RATE |
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NET RESENT VALUE of 1 |
FV / (1+R)^n FV= Future Value R= Interest Rate N= Number of Years |
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OPERATING CYCLE |
ACC. REC. TURN OVER DAYS + INV TURNOVER DAYS |
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PAYBACK PERIOD |
NET INITIAL INVESTMENT / INCREASE ANNUAL NET AFTER TAX CASH FLOW |
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PV OF LUMP SUM |
FUTURE VALUE / (1+ INTEREST RATE)^N N- NUMBER OF YEARS |
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PV OF ORDINARY ANNUITY |
PAYMENTS x ( 1- (1 / (1 + INTEREST RATE)^N) / INTEREST RATE |
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PROFITABILITY INDEX |
PRESENT VALUE OF NET FUTURE CASH FLOW / PRESENT VALUE OF INITIAL INVESTMENT |
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WEIGHTED AVG. COST OF CAPITAL |
(COST OF EQUITY X PERCENTAGE IN EQUITY STRUCTURE) + (WEIGHTED AVG. COST OF DEBT x PERCENTAGE OF DEBT IN CAPITAL STRUCTURE) |
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WEIGHTED AVG. INTEREST RATE |
EFFECTIVE ANNUAL INTEREST PAYMENTS / DEBT CASH AVAILABE |
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PV of Annuity |
PMT x (1- (1 / (1+ r )^n) / r PMT= Annual Payment |
