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finance mid term
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What does PE Ratio Measure?
Price per share /
Earnings per share
Market Value
Operational cash flow
Operating
Cash Flow:
EBIT $219
Depreciation $90
Current Taxes -$71
OCF $238
Capital Spending in OCF
Purchase
of fixed assets $198
Sales
of fixed assets -$25
Capital
Spending $173
ICF
Cash
Flow to Creditors
Interest $49
Retirement of debt
73
Debt service 122
Proceeds from new debt sales -86
Total $36
FCF
FCF=OCF+ICF
Cash Flow to
Stockholders
Dividends $43
Repurchase
of stock 6
Cash to Stockholders 49
Proceeds
from new stock issue -43
Total $6
Dupont analysis
what does PE Ratio measure?
Market value
Debt Equity
TD/TE
Leverage
oTotal Debt Ratio
= (TA – TE) /TA
Leverage
oTotal Asset Turnover
= Sales / Total Assets
Future Value
FV = C0×(1 + r)
Present Value
PV=C
_{1}
/ 1 + r
Where C1 is
cash flow at date 1, and
r is the appropriate interest rate.
Future Value over Multi periods
FV = C0×(1 + r)T
Where
C0 is cash flow at date 0,
r is the appropriate interest rate, and
T is the number of periods over which the cash
is invested.
oHow much would an investor have
to set aside today in order to have $20,000 five years from now if the current
rate is 15%?
9,943.53= 20000 / (1.15)
^{5}
If we deposit $5,000 today in an account paying 10%, how long does it take to grow
to $10,000?
10,000= 5,000/ 1+1.10
^{t 10,000/5,000= 2 = }
compounding periods
FV=C
_{0 }
x ( 1 + r/m)
^{mT FV = C0×erT }
Growing Perpetuity
PV= C/ r-g
PV= C x (1 + g)/ (r-g)
^{2}
+ PV= C x (1 + g)
^{2}
/ (r-g)
^{3}
.....
Annuity
PV = C/r [ 1- 1/ (1+r)
^{t }
]
IRR
NPV= -C + ....
Bond Value
f= face value
zero growth stock
constant growth stock
Author
Anonymous
ID
158743
Card Set
finance mid term
Description
fuck this shit
Updated
2012-06-14T16:28:24Z
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