Please put the cash flows in order. Cash is paid out to inv…
Please put the cash flows in order. Cash is paid out to investors in the form of interest and dividends. Reinvested Cash Flows are plowed back in to the firm. Firm invests in assets. Cash is paid to government as taxes. Other stakeholders may receive cash. Firm’s operations generate cash flows. Firm issues securities to raise cash.
Read DetailsAssets = Liabilities + EquityEFN = Assets – (Liabilities + E…
Assets = Liabilities + EquityEFN = Assets – (Liabilities + Equity)EFN = g * [Assets0 – (Profit Margin * (Sales0) * Retention Ratio)] – (Profit Margin * (Sales0) * Retention Ratio)Income = Revenue – ExpensesNet Working Capital = Current Assets – Current LiabilitiesCash Flow from Assets = Cash Flow to Creditors + Cash Flow to StockholdersCash Flow from Assets = Operating Cash Flow – Net Capital Spending – Change in NWCOperating Cash Flow = Earnings Before Interest and Taxes (EBIT) + Depreciation – TaxesEBIT = Net Income + Interest + Taxes = Sales – Costs – Operating ExpensesNet Capital Spending = Ending net Fixed Assets – Beginning Net Fixed Assets + DepreciationChange in NWC = Ending NWC – Beginning NWCCash Flow to Creditors = Interest Paid – Net New BorrowingCash Flow to Stockholders = Dividends Paid – Net New Equity RaisedUses of Cash: Increase in Assets or a Decrease in Liabilities or EquitySources of Cash: Increase in Liabilities and Equity or a Decrease in AssetsInternal Growth Rate = Return on Assets * Retention Ratio / 1 – (Return on Assets * Retention Ratio)Sustainable Growth Rate = Return on Equity * Retention Ratio / 1 – (Return on Equity * Retention Ratio) RATIOS Cash Coverage Ratio = (EBIT + Depreciation) / InterestCash Ratio = Cash / Current LiabilitiesCurrent Ratio = Current Assets / Current LiabilitiesDebt-Equity Ratio = Total Debt / Total EquityDebt Ratio = Total Debt / Total AssetsEquity Multiplier = 1 + Debt-Equity RatioInterest Coverage Ratio = EBIT / Interest ExpenseInventory Turnover = COGS / InventoryNWC to Assets = NWC / AssetsPrice/Earnings Ratio = Price Per Share / Earnings Per ShareProfit Margin = Net Income / SalesQuick Ratio = (Current Assets – Inventory) / Current LiabilitiesRetention Ratio = Retained Earnings / Net Income Return on Assets = Net Income / Total AssetsReturn on Equity = Net Income / Total EquityROE = Profit Margin x Total Asset Turnover x Equity MultiplierROE = ROA x Equity MultiplierTotal Asset Turnover = Sales / Total Assets
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