Ros69760 formulasheet 001-007
[Pages:7]Fundamentals of Corporate Finance
Seventh Canadian Edition by Ross, Westerfield, Jordan, and Roberts
Formula Sheet
Assets 5 Liabilities 1 Shareholders' equity Revenues 2 Expenses 5 Income Cash flow from assets 5 Cash flow to bondholders 1 Cash flow to shareholders Current ratio 5 Current assets/Current liabilities
Current assets 2 Inventory Quick ratio 5
Current liabilities Cash ratio 5 Cash 1 Cash equivalents/Current liabilities Net working capital to total assets 5 Net working capital/Total assets Interval measure 5 Current assets/Average daily operating costs Total debt ratio 5 [Total assets 2 Total equity]/Total assets Debt/equity ratio 5 Total debt/Total equity Equity multiplier 5 Total assets/Total equity
Long-term debt Long-term debt ratio 5 Long-term debt 1 Total equity Times interest earned ratio 5 EBIT/Interest Cash coverage ratio 5 [EBIT 1 Depreciation]/Interest Inventory turnover 5 Cost of goods sold/Inventory Days' sales in inventory 5 365 days/Inventory turnover Receivables turnover 5 Sales/Accounts receivable Days' sales in receivables 5 365 days/Receivables turnover NWC turnover 5 Sales/NWC Fixed asset turnover 5 Sales/Net fixed assets Total asset turnover 5 Sales/Total assets Profit margin 5 Net income/Sales Return on assets 5 Net income/Total assets Return on equity 5 Net income/Total equity P/E ratio 5 Price per share/Earnings per share Market-to-book ratio 5 Market value per share/Book value per share ROE 5 Net income/Sales 3 Sales/Assets 3 Assets/Equity
5 Profit margin 3 Total asset turnover 3 Equity multiplier
[2.1] [2.2] [2.3] [3.1]
[3.2]
[3.3] [3.4] [3.5] [3.6] [3.7] [3.8]
[3.9]
[3.10] [3.11] [3.12] [3.13] [3.14] [3.15] [3.16] [3.17] [3.18] [3.19] [3.20] [3.21] [3.22] [3.23] [3.24]
page # 26 30 32 64
66
66 66 66 67 67 67
67
68 68 68 68 69 69 70 70 70 70 71 71 72 72 74
2
Formula Sheet
Dividend payout ratio 5 Cash dividends/Net income
EFN 5 Increase in total assets 2 Addition to retained earnings 5 A1g2 2 p1S2R 3 11 1 g2
EFN 5 2p(S)R 1 [A 2 p(S)R] 3 g
EFN 5 2p(S)R 1 [A 2 p(S)R] 3 g g 5 pS(R)/[A 2 pS(R)]
ROA 3 R Internal growth rate 5 1 2 ROA 3 R EFN* 5 Increase in total assets 2 Addition to retained earnings
2 New borrowing 5 A(g) 2 p(S)R 3 (1 1 g) 2 pS(R) 3 (1 1 g)[D/E] EFN* 5 0
g* 5 ROE 3 R/[1 2 ROE 3 R]
p1S/A2 11 1 D/E2 3 R g* 5 1 2 p1S/A2 11 1 D/E2 3 R
Future value 5 $1 3 (1 1 r)t
PV 5 $1 3 [1/(1 1 r)t] 5 $1/(1 1 r)t
PV 3 (1 1 r)t 5 FVt PV 5 FVt/(1 1 r)t 5 FVt 3 [1/(1 1 r)t]
Annuity
present
value
5
C
3
a
1
2
Present value r
factor
b
1 2 1/ 11 1 r2t
5C3 e
r
f
Annuity FV factor 5 1Future value factor 2 12/r 5 111 1 r2t 2 12/r
Annuity due value 5 Ordinary annuity value 3 (1 1 r)
Perpetuity present value 3 Rate 5 Cash flow PV 3 r 5 C
Annuity present value factor 5 11 2 Present value factor2/r 5 11/r2 3 11 2 Present value factor2
C PV 5 r 2 g
PV
5
r
C 2
g
c
1
2
1 a
1
1 1
gt bd r
EAR 5 [1 1 (Quoted rate/m)]m 2 1
EAR 5 eq 2 1
Bond value 5 C 3 (1 2 1/(1 1 r)t)/r 1 F/(1 1 r)t
1 1 R 5 (1 1 r) 3 (1 1 h)
1 1 R 5 (1 1 r) 3 (1 1 h) R 5 r 1 h 1 r 3 h
R ................
................
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