FORMULA SHEET - University of Pittsburgh



FORMULA SHEET

NWC =Current Assets - Current Liabilities

Cash Flows from Assets = Operating Cash Flow - Net Capital Spending - Additions to NWC

Operating Cash Flow = EBIT + Depreciation - Taxes

Cash Flows to Creditors = Interest Payments - Net New Borrowing

Cash Flows to Stockholders = Dividends Paid - Net New Equity Raised

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(1 + nominal rate) = (1 + real rate) × (1 + inflation rate)

Duration = [pic]

Cumulative Voting: [pic] of the shares + 1 share gives majority if n directors are to be elected

[pic] (Quoted rate = APR)

Stock price: P0 = EPS/r + NPVGO or P0=D1/(r(g)

Dividend growth rate: g = retention ratio × return on retained earnings

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