FIN3403 - Final Exam

ROE Formula

Net Profit/Equity

Break-Even Point Formula (Units)

Fixed Costs/Sales p/u - variable costs p/u

Break-Even Formula (Sales $)

Sales-VC/Sales, THEN FC/whatever you got before

Contribution Margin

Sales-VC

Operating Income (EBIT)

Sales-VC-FC

Higher Operating Level=

Higher break even point AND VICE VERSA

Sales to EBIT

DOL

EBIT TO EPS

DFL

Sales to EPS

DCL

Capital Structure

LONG TERM RESOURCES (DEBT, PREFERRED STOCK)

How to find net income easy

EBIT (1-T)

How to find EBT

NI/(1-T)

EBIT-EPS Formula

EPS-EPS

Find new stock price

old price/1 + percent increase

How to find value of Stocks

Net income/shares outstanding = times P/E Ratio = times how many stocks before

Find earnings per share after new stock dividen percent is issues

net income/new shares outstanding

Stock price before ex-dividend daye

before price+ex-dividend price

How to find standard deviation

(Return-Expected return)²(probability)

FOR BOND PROBLEMS DONT MAKE PMT ±

true

INTRISIC VALUE FORMULA

DIVIDEND/RRR

HOW TO FIND D1

pv(1+i)