Corporate finance

 0    14 flashcards    wojtekdabek398
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Question Answer
Breakeven number of unitss - Q
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(Fixed operating cost + fixed financial cost) / (Price per unit - variable cost per unit)
Degree Total Leverage
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%change in net income / %change in the number of units sold
Net value of net income
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Old value x (1 + %increase)
Beta asset
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Beta equity x [1/1 + (1-tax rate) x(D/E) ]
Debt-to-Equity
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(Beta equity - Beta asset) / Beta asset x (1-tax)
Degree of combined levrege = DCL
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DOL x DFL
expected return on the market - r
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D / P + g
Weight of Debt
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D / (D + 1)
Cost of Preffered Capital
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Annual Dividend / Market Price
Degree if financial leverage - DFL
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% change in the income / % change in the operating income
CAPM
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Rf + Beta x (Rm - Rf)
Clost of Stock
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D / P
Cost of trade credit
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[1 + Discount / (1 - Discount)] ^(365/Number of days beyond the discount period) - 1
DOL
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% change in operating income / % change in units sold

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