Question: Provide formulas, with brief examples for the following: EBIT EPS ROE (= net income / book value of equity) ROA (= net income / book
Provide formulas, with brief examples for the following:
EBIT EPS ROE (= net income / book value of equity) ROA (= net income / book value of total assets) Current ratio (= current asset/current liability) Quick ratio (= (current asset inventory)/current liability) Net Working Capital D/E ratio M/B ratio P/E ratio Pay-out ratio Profit margin Total asset turnover Equity multiplier Modified Du Pont System Retained earnings Net profit after tax Annual tax shield Present Value of interest tax shields Firm valuation based on discounted cash flows
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