BZ20503

FORMULA:

Quick/Acid- Current Asset Inventory FV PV(FVIFi,n)

Test Ratio Current Liabilities

Average Accounts Receivables PV FV(PVIFi,n)

Collection Average daily credit sales
Period

Receivables Sales FVA PMT (FVIFAi,n)

Turnover Accounts Receivables

Inventory Cost of goods sold PVA PMT (PVIFAi,n)

Turnover Inventory

Fixed Asset Sales FVADUE PMT(FVIFAi,n)

Turnover Fixed Asset (1+i)

Times Interest Income before interest & tax PVADUE PMT(PVIFAi,n)

Earned (TIE) Interest (1+i)

Fixed Charge Income before fixed charge & k Piki

Coverage tax
Interest

Profit Margin Net Income
k 2
i k Pi
Sales

ROA or ROI Net Income CV

Total Asset k

ROE Net Income k p wiki

Equity
ROA
(1-Debt Ratio)

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PE Ratio Stock Price CVp p

Net Income/Number of shares k

Book Value Equity QBE FC .

per share Number of shares (P - VC)

Market/Book Stock Price DOL Q(P VC)

Ratio Book Value per share .
Q(P VC)
FC
VB INT(PVIFAYTM,N) + M(PVIFYTM,N) DFL EBIT .
EBIT i

YTM, kd INT + [(M VB)/N] DCL Q(P VC)

0.6(VB) + 0.4(M) .
Q(P VC)
FC i
kd after tax kd before tax(1-Tax) EOQ 2 SO
C

kp Dp____ Average (EOQ/2) +

Pp - F inventory Safety stock

ks D1 + g Carrying CQ
P0 cost 2

ks kRF + (km kRF ) Ordering SO

cost 2

ke D1+ g NPV CFt

(P0 F) (1 k ) t

WACC Wdkd after tax + wpkp +PI CFt inf lows

wsks CF outflows
t

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