gms 200 Study Guide - Final Guide: Cash Flow, Profit Margin, Capital Asset Pricing Model

• School: Bishop's University
• Department: business management
• Course: gms 200
• Professor: Eric Rickman

Document Summary

Quick ratio = (ca inv) / cl. Total asset turnover = sales / total assets. Total debt ratio = (ta total equity) / ta. Debt-equity ratio = total debt / total equity. Cash coverage ratio = (ebit + dep) / interest. Return on assets = ni / total assets or pm*tat. Return on equity ratio = net income/total asset. Roe = em x tat x profit margin. Roe = equity multiplier * return on assets. Retention ratio = r = 1-(div. /net income) or 1-dpr. Sustainable growth rate = g=(roe x r) / (1-roexr) Net capital spending = increase in nfa + depreciation. Required return = (share price / currently sells) + % growth. Addition to nwc = ocf change in nfa-cfs-div new equity. Cfa = ocf net capital spending change in nwc. Ni + dep + int (sales-costs)(1-t) + tax shield (i. e. dep*tax rate) Cash flow from assets = cash flow to bondholders + cash flow to shareholders.