FINANCE FORMULAS

EPS

profits/number of shares

Dividends per share

dividends/number of shares

PER

price today/EPS

YIELD

dividends per share/price today

market capitalization

number of shares x price today

DFL at base level EBIT

EBIT/EBIT - interests - (PD*1/(1-T))

Interests

#debt x rate of interest

taxable base

EBIT - interest

tax rate

tax rate % x taxable base

net income

taxable base - tax rate

preferred dividends

annual dividends on preferred stocks ($/share x # shares)

earnings for common stocks

net income - preferred dividends

number of shares

#shares of common stock

EPs

earnings for common stock / number of shares

DFL

EBIT/(EBIT - interests - (preferred dividends/(1-0.2)))

HHF hotel DFL

for evey 1% change in EBIT, EPS will change 2% in the same direction

% change

(new value - old value) /old value

% EBIT increment

(new value - old value)/ old value

% EPS increment

DFL X % EBIT increment

EPS if EBIT rises #

EPS x ( 1 + % EPS increment)

DF

(1+ $cost of capital$)^year [1,2,3,etc]

NPV

sum of al PV

IRR

(all cash flow)

cash flow

outflow + inflow

PV

cashflow/DF