Академический Документы
Профессиональный Документы
Культура Документы
=1+(D/E)
Earnings Per Share (EPS) = Net Income / Total shares Dividends per Share (DPS) = Total Dividends / Total shares Net Income = Cash Dividends + Addition to retained earnings
Dividend Payout Ratio = Cash Dividends / Net Income Net Working Capital (NWC) = Current Assets (CA) - Current Liabilities (CL)
1/4
CFFA = OCF - NET CAPITAL SPENDING - CHANGE IN NWC Net Capital Sp. = Ending net fixed assets - Beginning net fixed assets + Depreciation Change in NWC = Ending NWC - Beginning NWC CF to creditors = Interest Paid - Net new borrowing CF to stockholders = Dividends paid - Net new equity raised CFFA = CF to creditors + CF to stockholders OCF FORMULAS 1) OCF = EBIT+DEPRECIATION-TAXES 2) OCF = (SALES-COSTS)x(1-T) + DxT 3) OCF = NET INCOME + DEPRECIATION Depreciation tax shield = Depreciation x T Straight-line depreciation "D" = (Initial cost ending book value) / number of years Book value of an asset = initial cost accumulated depreciation After-tax salvage = salvage T(salvage book value) NPV = PV of future cash flows - cost PI = PV of future cash flows / cost AAR = Average Net Income / Average Book Value
FV = PV (1+r)t PV = FV/(1+r)t r = (FV / PV)1/t 1 t = Ln(FV / PV) / Ln(1 + r) Annuity Future Value
1 1 (1 + r ) t PV = C r
Annual Percentage Rate 1 APR = m (1 + EAR) m - 1 Effective Annual Rate m APR EAR = 1 + 1 m
(1 + r )t 1 FV = C r
PV for a perpetuity = C / r
2/4
1 1 (1 + r) t Bond Value = C r
F + t (1 + r)
Fisher Effect: (1 + R) = (1 + r)(1 + h), where, R = nominal rate, r = real rate, h = expected inflation rate
P0 =
D1 D2 D3 + + + ... (1 + R)1 (1 + R) 2 (1 + R) 3
P0 =
D R
P0 =
D 0 (1 + g) D = 1 R -g R -g
Dividend yield =
3/4
Historical variance = sum of squared deviations from the mean / (number of observations 1) Historical Standard deviation = square root of the historical variance Expected Return: Expected Variance: Expected Standard deviation:
E ( R) = pi Ri
i =1
2 = pi ( Ri E ( R )) 2
i =1
= 2
R portfolio,i = w j R j ,i
j
For example, let's say we have 2 assets: A and B and 2 states: boom and recession. Then the portfolio return in each state is calculated as:
where wj is the portfolio weight for asset j Rj,i is the return of asset j in state i
Value of an unlevered firm (assuming perpetual cash flows) : Without Taxes V L = VU WACC = R A = (E/V)RE + (D/V)RD RE = RA + (RA RD)(D/E) Capital Asset Pricing Model (SML) Cost /Req. Return of Equity RE: Dividend growth model CAPM E(RA) = Rf + A(E(RM) Rf)
P0 = RE =
D1 RE g D1 +g P0
RE = R f + E ( E ( RM ) R f )
Cost/Req. Return Debt: R D = YTM on debt Cost/Req. Return Preferred: R P = D / P0 Weighted Average Cost of Capital a.k.a. WACC = W ExRE + W DxRD(1-TC) + W PxRP V=E+D+P; W E=E/V; W D=D/V; W P=D/V
Page 4