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40 Cards in this Set
- Front
- Back
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Initial Cash Outlay
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outlay = FC!nv + NWC!nv
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after-tax operating cash flow (CF)
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after-tax operating cash flow (CF)
= (S - C- D)(l - T) + D = (S - C)(l - T) + (TD) |
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TNOCF
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TNOCF = Sal + NWC!nv- T (Sal - B)
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economic income
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= cash flow + (ending market value -beginning market value)
OR = cash flow - economic depreciation |
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economic profit:
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EP = NO PAT- $WACC
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market value added:
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NPV = MVA = EP / (1 + WACC)
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Residual Income
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net income - equity charge
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Project Cost of Equity
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Rp + Beta proj [E(RMKT )-RF]
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Weighted Average Cost of Capital (WACC)
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[rd x (1 - t)(D/D+E)] + [re x D/D +E)]
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Static Trade-Off Theory:
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VL = Vu +(t x d)-PV(costs offmancial distress)
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Change in Price When Stock Goes Ex Dividend
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D (1 - Td) / (1 - Tcg)
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Effective Tax Rate
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corporate tax rate + (1 -corporate tax rate)(individual tax rate)
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Expected Dividend
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Previous dividend + [Expected increase in EPS + target payout ratio + adjustment factor)
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FCFE Coverage Ratio
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FCFE / (dividends + share repurchases)
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Herfindahl-Hirschman Index:
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HHI = Sum of (MSi x!00) squared
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Free Cash Flow
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Net income
+ Net interest after tax = Unlevered net income ± Change in deferred taxes =Net operating profit less adjusted taxes (NOPLAT) + Net noncash charges ± Change in net working capital - Capital expenditures (capex} = Free cash flow (FCF) |
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Takeover Premium
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(DP - SP) / SP
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Post-Merger Value of an Acquirer
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VAT = VA + VT + S-C
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Gain to Target
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TP = PT - VT
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Gain to Acquirer
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S - TP = S-(PT- VT)
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Price of Target in Stock Deal
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PT = (N x PAT)
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Gross Profit Margin
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Gross Profit / Net Sales
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Operating Profit Margin
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operating profit / net sales = EBIT / net sales
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Net Profit Margm
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Net Income / Sales
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Return on Assets
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Net Income / Average Total Assets
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Return on Total Invested capital Ratio
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(net income + interest expense) / (net income + interest expense)
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Return on Total Equity
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net income / average total eqwty
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Interest Burden Rate
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interest expense / total assets
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Tax Retention Rate
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1 - (dividends declared - operating income after taxes)
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Financial Leverage Ratio
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total assets / total equity
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Long-Term Debt-to-Equity Ratio
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total long term debt / total equity
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Debt to Equity Ratio
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total debt / total equity
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Debt to Capital Ratio
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EBIT / Interest Expense
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Payout Ratio
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Dividends paid / Net income
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Retention Ratio
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1 - payout ratio
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Earnings Per Share
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(net income - preferred dividends) / average common shares outstanding
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Book Value per Share
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common stockholders' equity / total number of common shares outstanding
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Balance Sheet Based Accruals Ratio
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Change in NOA / Avg NOA
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Cash Flow Based Accruals Ratio
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(NI - CFO - CFI) / Avg NOA
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Core Operating Margin
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(Sales - COGS - SG&A) / Sales
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