FIN 300 Exam 1 Formulas Questions and Answers.

Operating Cash Flow (OCF) - Answer EBIT + Depreciation - Taxes Net Capital Spending (NCS) - Answer Ending FA + Depreciation - Beginning FA Net Working Capital (NWC) - Answer CA - CL Net Income - Answer Sales - Costs - Depreciation - Interest Expense = EBT EBT x Tax Rate = Taxes EBT - Taxes = Net Income NI = Addition to RE + Dividends NI = Sales x PM Cash Flow From Assets (CFFA) - Answer Cash Flow to Creditors + Cash Flow to Stockholders Cash Flow to Creditors - Answer Interest - Net New Long-Term Debt Cash Flow to Stockholders - Answer Dividends - Net New Equity Book Value Per Share - Answer TE / Number of Shares Sales Per Share - Answer Sales / Number of Shares PEG Ratio - Answer P/E Ratio / Growth Rate Return on Equity(ROE) - Answer ROA(EM) Equity Multiplier(EM) - Answer 1 + Debt/Equity Ratio Total Debt Ratio - Answer (TA - TE)/ TA or TD/TA DuPont Identity - Answer (NI/Sales) x (Sales/Assets) x (Assets/Equity) or