Fin 340 Formulas UPDATED ACTUAL Exam Questions and CORRECT Answers

Fin 340 Formulas UPDATED ACTUAL
Exam Questions and CORRECT Answers
Networking Capital - CORRECT ANSWER - CA - CL



Free Cash Flow (1) - CORRECT ANSWER - [EBT (1 - tax rate) + depreciation] - [change
in gross fixed assets + change in net working capital]


Free Cash Flow (2) - CORRECT ANSWER - [NOPAT + depreciation] - [investment in
operating capital]


Free Cash Flow (3) - CORRECT ANSWER - operating cash flow - investment in
operating capital


liquidity ratios - CORRECT ANSWER - current ratio, quick ratio, cash ratio



asset management ratios - CORRECT ANSWER - inventory turnover, days sales in
inventory, accounts receivable turnover, average collection period (ACP), accounts payable
turnover (APP), fixed assets turnover, sales to working capital, total asset turnover, capital
intensity


debt management ratios - CORRECT ANSWER - debt ratio, debt to equity, equity
multiplier, times interest earned, fixed charge coverage, cash coverage


profitability ratios - CORRECT ANSWER - gross profit margin, operating profit margin,
profit margin, basic earnings power (BEP), return on assets (ROA), return on equity (ROE),
dividend payout


market value ratios - CORRECT ANSWER - price earnings (PE), market to book