"FORMULA SHEET" Days Sales Outstanding = Receivables / Average Days Sales Price / Earnings = Price Per Share / Earnings Per Share Present value of a perpetuity = next expected cash flow / WACC - Growth ATCOD = Rd (1-TR) ROIC=EBIT * (1 - TR) / Invested Capital Fixed Asset Turnover = Sales / Fixed assets Inventory Turnover = COGS / Inventory Dividend Yield = Dividend / Price EVA = EBIT * (1-TR) - (Invested Capital * Cost of Capital) Return On Equity = Net Income / Equity Required Return / Cost of Equity / CAPM = Rs = Rrf + (Rm- Rrf)B Earnings Per Share = Net Income / Outstanding Shares Free Cash Flow= EBIT(1-TR) + Depreciation - Capital Expenditures +/- Change in Net Working Capital Profitability Index = NPV/ Investment + 1 Debt ratio = Total Debt / Total Liabilities & Equity Days in Inventory = Inventory / Average Daily COGS WACC=% Debt (ATCOD) + % Equity (Cost of Equity) Cash Conversion Cycle = Inventory Days + DSO - A/P Days Dividend Growth Model = next expected dividend / WACC - GrowthQuestion 12 3 pts What would you pay today for a bond that had the following data? (round to the nearest dollar - ex: 123) Par value = $1,000 Coupon rate = 12% (interest compounds semi annually and payments are made semi annually) Maturity = 30 years (but 5 years have already past) Current market interest rate = 6%