Compounds interest receiving interest on principal and interest
PV=FV/(1+r)*t
Interest rate:R=(FV/PV)*t-1
Order doesn’t matter
Check the rate have to coordinate with years (multiply them)
To use cashflow fn
cF->2nd-> then CE/C(CLR work)
Have to zero out any skipped points of investment
When u invest its negative on the timeline
Current assets and liability= working capitol
Capital budgeting: fixed assets investments
Finance thru debt(bonds) equity(common stock)
Em*pm*Total asset turnover=ROE (multiply)
Debt usage
Expense control looks at profit margin
Profit margin=expense control
TAT= asset utilization
EM= debt usage
ROE= (profitability)
BEP=debt costs (dept helps if BEP is higher than debt costs)
Debt ratio= leverage
Day in sales receivable=a financial metric that measures the average number of days it
takes for a company to collect payments from its customers after a sale has been made.
With risk of return have to maximize firm value (stock could plummet bc of too much risk)
ROE is help my mutlier
Basic earning power sales before taxes
Net capital spending (nfa end - NFA beginning + debt
Cash flow= dividends paid- net new equity
Cf to creditors= Interest paid-(net new debt) Long term debt-Long term debt
CFFA cf creditors+cf stockholders
Time interest earned ROE and receivables turnover the higher the better
PV=FV/(1+r)*t
Interest rate:R=(FV/PV)*t-1
Order doesn’t matter
Check the rate have to coordinate with years (multiply them)
To use cashflow fn
cF->2nd-> then CE/C(CLR work)
Have to zero out any skipped points of investment
When u invest its negative on the timeline
Current assets and liability= working capitol
Capital budgeting: fixed assets investments
Finance thru debt(bonds) equity(common stock)
Em*pm*Total asset turnover=ROE (multiply)
Debt usage
Expense control looks at profit margin
Profit margin=expense control
TAT= asset utilization
EM= debt usage
ROE= (profitability)
BEP=debt costs (dept helps if BEP is higher than debt costs)
Debt ratio= leverage
Day in sales receivable=a financial metric that measures the average number of days it
takes for a company to collect payments from its customers after a sale has been made.
With risk of return have to maximize firm value (stock could plummet bc of too much risk)
ROE is help my mutlier
Basic earning power sales before taxes
Net capital spending (nfa end - NFA beginning + debt
Cash flow= dividends paid- net new equity
Cf to creditors= Interest paid-(net new debt) Long term debt-Long term debt
CFFA cf creditors+cf stockholders
Time interest earned ROE and receivables turnover the higher the better
