FIN 412 exam 1 questions with complete
solutions
Net Income - answer-Revenue
c c c
- Expenses
c
= Gross Profit
c c c
- Operating Expenses
c c
=EBITDA
-Depreciation
=EBIT
- Interest
c
- Tax
c
= Net Income
c c
NOPAT - answer-Revenue c c
-COGS
=Gross Profit c
-Operating Expenses c
=EBITDA
-Depreciation/Amortization
=EBIT
-Tax
=NOPAT
Operating Cash Flow - answer-NOPAT + Depreciation c c c c c c
Cash flow from operating activities - answer-= Net Income + Depreciation + Amortization
c c c c c c c c c c c c
+ non-cash
c c
Working CApital - answer-current assets - current liabilities
c c c c c c c
Vo - answer-FCF1/(1+WACC)1 + FCF2/(1+WACC)2 + . . . + FCFN/(1+WACC)N
c c c c c c c c c c
Sales Growth - answer-P1-P0/P0c c c
CAPEX - answer-initial Investment + Sale of Equipment
c c c c c c c
Free Cash Flow - answer-OCF - CAPEX - Change in NWC
c c c c c c c c c c
Gross Profit Margin - answer-Gross Profit/Revenue
c c c c c
solutions
Net Income - answer-Revenue
c c c
- Expenses
c
= Gross Profit
c c c
- Operating Expenses
c c
=EBITDA
-Depreciation
=EBIT
- Interest
c
- Tax
c
= Net Income
c c
NOPAT - answer-Revenue c c
-COGS
=Gross Profit c
-Operating Expenses c
=EBITDA
-Depreciation/Amortization
=EBIT
-Tax
=NOPAT
Operating Cash Flow - answer-NOPAT + Depreciation c c c c c c
Cash flow from operating activities - answer-= Net Income + Depreciation + Amortization
c c c c c c c c c c c c
+ non-cash
c c
Working CApital - answer-current assets - current liabilities
c c c c c c c
Vo - answer-FCF1/(1+WACC)1 + FCF2/(1+WACC)2 + . . . + FCFN/(1+WACC)N
c c c c c c c c c c
Sales Growth - answer-P1-P0/P0c c c
CAPEX - answer-initial Investment + Sale of Equipment
c c c c c c c
Free Cash Flow - answer-OCF - CAPEX - Change in NWC
c c c c c c c c c c
Gross Profit Margin - answer-Gross Profit/Revenue
c c c c c