EQUATION SHEET Principles of Finance Exam 1

Transcription

1 EQUATION SHEET Piciple of iace Exa INANCIAL STATEMENT ANALYSIS Ne cah flow Ne icoe + Depeciaio ad aoizaio DuPo equaio: ROANe pofi agi Toal ae uove Ne icoe Sale Sale Toal ae DuPo equaio: ROE ROA Equiy uliplie Ne icoe Toal ae Sale Coo equiy P ofi Toal ae Equiy agi uove uliplie Ne icoe Sale Toal ae Sale Toal ae Coo equiy THE INANCIAL ENVIRONMENT Ne aou of fud fo iue (Aou of iue) x ( loaio co) Aoueeded Iue aou ( loaioco) TIME VALUE O MONEY Lup-u (igle) paye: Auiy paye: ( + ) - VA PMT ( + ) PMT 0 ( + ) - VA(DUE ) PMT ( + ) ( ) PMT ( + ) 0 - PVA PMT PMT ( + ) ( + )

2 - PVA(DUE ) PMT ( ) PMT ( + ) ( + ) ( ) Pepeuiie: Paye PMT Pee value of a pepeuiy PVP Iee ae Ueve cah flow ea: PVC C C C ( + ) ( + ) ( + ) Iee ae (yield): Saed aual iee ae Peiodic ae PER Nube of iee paye pe yea i ee peiod PER of yea paye pe yea SIMPLE Nube of Nube Nube of i ee Effecive SIMPLE EAR EAR ( + PER ) -.0 aual ae Aual peceage ae APR PER x YRS COST O MONEY Dolla eu (Dolla icoe) + (Capial gai) (Dolla icoe) + (Edig value Begiig value) Dolla eu Dolla icoe Capial gai Yield Begiig value Begiig value Dolla icoe (Edig value - Begiig value) Begiig value Rae of eu Rik-fee ae + Rik peiu R + RP Rae of eu R + RP R + [DRP + LP + MRP] [* + IP] + [DRP + LP + MRP] Teauy R + MRP [* + IP] + MRP Iee ae Iee ae i Yea i Yea 2 RR2 Yield o a 2-yea bod 2 2

3 2 2 C C C C Value of a ae ( ) ( ) ( ) ( ) Valuaio Cocep Geeal valuaio odel: C C C 0 ( ) ( ) ( ) V PV of C Bod Valuaio: - Bod INT INTM ( + d) N V d N INT + M Value N ( + d) ( + d) d ( + d) Adju d, N, ad INT if iee i paid oe ha oce pe yea. YTM Yield o auiy INT INT M Vd N N ( + YTC ) ( + YTC ) ( + YTC) YTC Yield o call Sock Valuaio: ˆ Sock Dˆ Dˆ D V Pˆ 0 value ( ) ( ) ( ) D0 ( + g) ˆ Coa gowh ock: D P0 - g - g Dˆ Dˆ 2 Dˆ Pˆ D ˆ ( g o ) Nocoa gowh ock: ˆ P 0 ; whee P 2 ( ) ( ) ( ) g o g o oal, o coa gowh Ecooic EVA ( T) Aveage co Iveed value added of fud capial Rik ad Rae of Reu Expeced ae ˆ P + P P P of eu 2 2 i i i

4 2 i ˆ 2P i i Vaiace ( - ) 2 2 ˆ i P i i Sadad deviaio ( ) Eiaed ( ) 2 P 2 Rik Coefficie of vaiaio CV Reu ˆ ˆ w ˆ + w ˆ w ˆ w ˆ P 2 2 N N j j j N w + w w w P 2 2 N N j j j N Reu Rik-fee eu + Rik Peiu R + RP RP Reu - R RP Ivee RP M x β Ivee Ivee R + RP Ivee R + (RP M )β Ivee R + ( M - R )β Ivee Capial Budgeig Evaluaio echique: Aou of he iiial ivee ha i Nube of yea ju uecoveed a he a of heecovey yea Payback befoe full ecovey of + oigial ivee Toal cah flow geeaed duig he ecovey yea Tadiioal payback uadjued cah flow ae ued Dicoued payback dicoued cah flow, o pee value, ae ued C C C 0 0 NPV C ( ) ( ) ( ) C C C 0 ( IRR) ( IRR) 0 (IRR) C 0 IRR ieal ae of eu MIRR: PV of cah ouflow V of cah iflow TV (MIRR) (MIRR) ; 0 CO 0 CI ( ) () (MIRR)

5 Cah low Eiaio Ne cah flow Ne icoe + Depeciaio Reu o capial + Reu of capial Iceeal opeaig cah flow Cah eveue -Cah expee -Taxe NOI ( T) Dep ( DA ) ( T) T( Dep ) Co of Capial Bodholde' equied Tax avig d -d d Afe-ax copoe - co of deb ae of eu aociaed wih deb T (-T) Copoe co Dp D p of pefeed ock P ( - ) NP p 0 0 Copoe co Dˆ + ( - ) + g ˆ of eaied eaig R M R β P0 Copoe co ˆ ˆ D D e + g + g of ew equiy P ( - ) NP 0 Popoio Afe-ax Popoio Co of Popoio WACC of x co of + of pefeed x pefeed + of coo x deb deb ock ock equiy Co of coo equiy w + w + w ( o ) dt dt p p e WACC Beak Poi Toal dolla aou of lowe co of capial of a give ype Popoio of hi ype of capial i he capial ucue Plaig ad Cool Sale level ull capaciy ale Pece of capaciy ued o geeae ale level Opeaig Beakeve Aalyi Sale Toal opeaig Toal Toal + eveue co vaiable co fixed co (P Q) TOC (V Q) + Q OpBE P-V Coibuio agi S OpBE V Go pofi agi - P

6 ΔNOI Δ Δ NOI ΔSale ΔSale ΔQ Sale Sale Q Degee of Peceage chage i NOI DOL opeaig leveage Peceage chage i ale DOL (Q P) - (Q V) S - VC Go pofi (Q P) - (Q V) - S - VC - iacial Beakeve Aalyi Eaig available o coo ockholde (-I)(-T)-D p EPS 0 Nube of coo hae ouadig Sh ibe Dp I + ( - T) Degee of Pece chage i EPS DL fiacial leveage Pece chage i ΔEPS EPS Δ C DL - I - [iacial BEP] iacial BEP I + Dp ( - T) DL - I Whe hee i o pefeed ock. ΔEPS Δ ΔEPS EPS EPS ΔSale ΔSale Δ Sale Sale Degee of DTL x DOL x DL oal leveage Go Pofi Go Pofi DTL x - [iacial BEP] - [iacial BEP] S - VC Q(P - V) - I [Q(P - V) - ]- I Whe hee i o pefeed ock.