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Flashcards for financial formulas and concepts.
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Market Value Added (MVA)
MVA = Spread × Capital
Spread
Spread = ROIC – WACC
Return on Invested Capital (ROIC)
ROIC = NOPAT / Invested Capital
NOPAT
NOPAT = EBIT × (1 – Tax Rate)
Return on Invested Capital (Operating Breakdown)
ROIC = Operating Margin × Turnover
Operating Margin
EBIT / Sales
Capital Turnover
Sales / Capital