Formula sheet not provided at the exam

1. C I = d + F = OI NOA1
2. C I = NFA NFI + d 2
3. C I = NFE NFO + d 3
4. CSEt = CSEt-1 + Total Comprehensive Incomet Net payout to shareholderst 4
5. Discounted cash flow model and all its variations: 0 =
+1 +1
( )(1+ )

1 1
(1+ )

+ +

0 5

6. REt = Earningst re * CSEt-1 = (ROCEt re) * CSEt-16

7. Residual income model and all its variations: 0 = 0 +
+1
( )(1+ )

1
(1+ )

+ +

8. ROCE = RNOA + NFO/CSE * (RNOA NBC) = RNOA NFA/CSE * (RNOA

RNFA) 8

See, for example, pp. 238 and 244 in Financial Statement Analysis and Securities Valuation, Penman,
McGraw-Hill 5th Edition (i.e., textbook)
2
See, for example, p. 244 in the textbook
3
See, for example, p. 244 in the textbook
4
See, for example, p. 40 in the textbook
5
See, for example, p. 116 in the textbook
6
See, for example, pp. 145 and 147 in the textbook
7
See, for example, p. 154 in the textbook. Variations of the Residual Income model that you must learn
by heart include the Residual Operating Income model of chapter 14.
8
See, for example, pp. 366 and 368