ECN 204 Study Guide - Midterm Guide: Weighted Arithmetic Mean, Liquidity Premium, Trade Secret
23 Apr 2014
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% rate of return = cash flow + (ending value -beginning value) Beginning equity g = ending equity - beginning equity. & liquidity-stage; mezzanine financing: funds for plant expansion, marketing expenditures, working capital, and product or service improvements. Seasoned financing: takes place during the venture"s maturity stage. Npm = net profit/sales (cid:0) gpm= gross profit/sales (cid:0) asset turnover = Roa = net income/total assets, roa = npm x ato. Roe= net income/total equity= roe = net income/sales sales/assets . Assets/equity = pro t margin total asset turnover equity multiplier. P/e ratio = price per share/earnings per share. Market capitalization = current market price per share x number of shares outstanding. Asset intensity= total assets/revenues; ni= (ebit-i) * (1-t) Free cash flow to equity=net profit + depreciation charges- Net profit= dollar profit left after all expenses, including financing costs and taxes, have been deducted from the revenues. Case 1: high profit margins & low asset turnovers.
