FINE 2000 Lecture Notes - Lecture 1: Nopat, Cash Flow, Market Rate
14 Jun 2016
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Cf finance = dividends interest, new debt, new equity. Cash from assets (aka free cash flow) = cfo + cfi. Federal portion 16. 5% (note: small businesses w/ less than 000, taxable income. Provincial rates vary across the country (diff rate for small businesses) Cost of capital rate caries company to company b/c diff operations, diff capital structure. Assume bonds are semi-annual, unless stated otherwise i/y depends on market rate. Can ask to calculate g first, giveenm historic data. > calc compounded growth rather than avg growth. If same % of dividends is paid out each year, stock g should = div g. 14. 1 / 14. 6 not responsible for (check course outline for details) Apr required to be quited by canadian law. Mortgages must be stated as an apr rate: canadian mortgages compounded semi annually, payment period -> usually monthly, have to take apr rate and calculate ear based on semi-annual compound, ear rate to period rate formula.
