Finance exam 1 formula sheet
Chapter 3 Chapter 4
Book Value Per Share (BVPS) = Total Book Equity / Number of Shares Profit Margin (PM) = Net Income / Sales
Net Operating Working Capital (NOWC) = Current Assets - (Current Liabilities - Notes Payable) Equity Multiplier = Assets / Equity
Free Cash Flow (FCF) = EBIT (1 -T) + Dep. - (Capex + ∆NOWC) Total Asset Turnover (TATO) = Sales / Total Assets
Market Value of Equity = Stock Price x Number of Shares - Total Book Value of Equity Total Amount of Debt = Target Debt to Asset Ratio % x Assets
*Manipulate this formula (MVE) to solve for the various parts Times Interest Earned (TIE) = EBIT / Interest Return on Total Assets (ROA) = Net Income / Assets
Market Value Added (MVA) = Market Value of Equity - Book Value of Equity Basic Earning Power (BEP) = EBIT / Assets
Dividends (If not given) = Net Income - Change Return on Equity (ROE) = Net Income / Equity
Net Income (if not given) = The change in retained earnings + dividends paid *To determine NI via ROE: NI = Target ROE x Equity
Economic Value Added (EVA) = EBIT (1 -T) - (WACC x Total Investor Supplied Capital)
After Tax Dividend Yield = Preferred dividend rate x [1 - (1 - Div Exclusion %) (T)] Market / Book Ratio (M/B): Stock Price / Book Value Per Share (BVPS)
*If a divident exclusion % is not given to you, assume 70% *Book Value per Share (BVPS) = Total Book Equity / Number of Shares ∆ Net Income = ∆ in Dep x (1 - T) DuPont Equation: ROE = Profit Margin x TATO x Eq. Multiplier
Carry Back Carry Forward = Net Loss can be applied two years back and 20 years in future Earnings Per Share (EPS) = Net Income / Shares Outstanding
Municipal Yield = Before Tax Bond Yield x (1-T) or Municipal Yield = After Tax Bond Yield Dividends Per Share (DPS) 1 = EPS x Payout %
*Municipal Bonds are tax exempt so their BT Yield = AT Yield, can solve for taxes in
Book Value Per Share (BVPS) = Total Book Equity / Number of Shares Profit Margin (PM) = Net Income / Sales
Net Operating Working Capital (NOWC) = Current Assets - (Current Liabilities - Notes Payable) Equity Multiplier = Assets / Equity
Free Cash Flow (FCF) = EBIT (1 -T) + Dep. - (Capex + ∆NOWC) Total Asset Turnover (TATO) = Sales / Total Assets
Market Value of Equity = Stock Price x Number of Shares - Total Book Value of Equity Total Amount of Debt = Target Debt to Asset Ratio % x Assets
*Manipulate this formula (MVE) to solve for the various parts Times Interest Earned (TIE) = EBIT / Interest Return on Total Assets (ROA) = Net Income / Assets
Market Value Added (MVA) = Market Value of Equity - Book Value of Equity Basic Earning Power (BEP) = EBIT / Assets
Dividends (If not given) = Net Income - Change Return on Equity (ROE) = Net Income / Equity
Net Income (if not given) = The change in retained earnings + dividends paid *To determine NI via ROE: NI = Target ROE x Equity
Economic Value Added (EVA) = EBIT (1 -T) - (WACC x Total Investor Supplied Capital)
After Tax Dividend Yield = Preferred dividend rate x [1 - (1 - Div Exclusion %) (T)] Market / Book Ratio (M/B): Stock Price / Book Value Per Share (BVPS)
*If a divident exclusion % is not given to you, assume 70% *Book Value per Share (BVPS) = Total Book Equity / Number of Shares ∆ Net Income = ∆ in Dep x (1 - T) DuPont Equation: ROE = Profit Margin x TATO x Eq. Multiplier
Carry Back Carry Forward = Net Loss can be applied two years back and 20 years in future Earnings Per Share (EPS) = Net Income / Shares Outstanding
Municipal Yield = Before Tax Bond Yield x (1-T) or Municipal Yield = After Tax Bond Yield Dividends Per Share (DPS) 1 = EPS x Payout %
*Municipal Bonds are tax exempt so their BT Yield = AT Yield, can solve for taxes in