Assets

+Revenues
[2.3]
Quick
Current
[3.2]
Net
Interval
Total
Debt/equity
[3.6]
Equity
[3.8]
[3.7]
Long-term
Times
[3.9]
Cash
[3.10]
Inventory
[3.11]
[3.12]
Receivables
[3.13]
Days
[3.14]
NWC
=[3.15]
[3.16]
Cash
[$3,588
$.28/$.72
$1/$.72
$457/[$457
$691/$141
[$691
$1,344/$422
365/3.2
$2,311/$188
365/12.3
$2,311/($708
working
turnover
flow
ratio
coverage
ratio
debt
interest
sales
=+liabilities
flow
multiplier
ratio
assets
Liabilities
measure
from
debt
276]/$141
=turnover
Expenses
=ratio
to=30
capital
2,591]/$3,588
ratio
=1.39
114
turnover
in
+Cash/Current
.39
4.9
=ratio
assets
shareholders
ratio
+2,591]
earned
inventory
receivables
Sales/NWC
Current
3.2
12.3
days
=Inventory
Total
$540)
==[Total
times
Current
totimes
=Total
times
+$967/$141
=Cost
=Income
ratio
[EBIT
Shareholders
total
equity
=Sales/Accounts
Cash
assets/Current
$457/$3,048
=of
13.8
liabilities
=assets
debt/Total
assets/Total
assets/Average
=365
+=.28
[2.2]
flow
assets
goods
365
EBIT/Interest
Depreciation]/Interest
times
days/Inventory
=days/Receivables
6.9
tosold/Inventory
Total
=equity
bondholders
[3.3]
Net
.15
times
receivable
liabilities
equity
equity]/Total
working
daily
[2.1]
turnover
operating
capital/Total
turnover
[3.1]assets
costs [3.5]
assets [3.4]

Fixed
Total
[3.17]
Profit
[3.18]
[3.19]
Return
[3.20]
P/E
[3.21]
Market-to-book
[3.22]
ROE
[3.23]
Dividend
[3.24]
[4.1]
g[4.2]
Internal
[4.4]
=ROA
EFN
g*
[4.6]
1 A(g)
$2,311/$2,880
$2,311/$3,588
$363/$2,311
$363/$3,588
$363/$2,591
$157/$11
$157/($2,591/33)
Profit
$44/$132
=3313%
.132($500)(2/3)/[$500
44/[500
44/456
New
==ROA
ratio
.pS(R)/[A
ROE
asset
Net
Rp(S)R
Increase
0borrowing
margin
on
.p(S)R
margin
=payout
growth
.p(S)R
assets
=equity
Rincome/Sales
=[4.5]
9.65%
R/[1
turnover
Price
44]
+14.27
pS(R)]
+=.in
ratio
[A
=(1
Net
15.7%
10.12%
.14%
ratio
[A
rate
=ROE
.80
.64
per
Total
p(S)R]
total
Net
=times
income/Sales
+p(S)R]
=$157/$78.5
times
=share/Earnings
.g)
Sales/Net
Sales/Total
income/Total
.Market
asset
Cash
assets
R]
Sales/Assets
.[4.7]
.132($500)(2/3)]
.ggdividends/Net
pS(R)
value
turnover
[4.3]
=.Addition
fixed
2(1
assets
assets
equity
per
times
per
+..assets
share/Book
Assets/Equity
g)[D/E]
share
Equity
toincome
retained
multiplier
value
earnings
per share

p(S/A)(1
EFN
[4.8]
[4A.1]
g*
ROE
Future
[4A.2]
PV
Annuity
[5.3]
EAR
1Bond
[7.2]
R[7.1]
[7.3]
NPV
[7C.1]
[7.4]
OCF
=[10.1]
[10.2]
rA[nnuity
6.1]
New
=+CA(g)
$200
(S
Project
$120
$720
=.=rR.ROE
p(S/A)(1
$1(S
(1
FVt
value
Increase
borrowing
Rp(S/A)(1
[1
+=eq
(co
EBIT
 1+Cvalue
h(1
+.due
present
600
p(S)R
+/(1
R[1/(1
[1/(1
+r)t
net
D/E)
C+=1(Quoted
D)
rvalue
cN)/cN
+=income
C[6.3]
Dr)
.+=D)
D/E)
+in
$1
.r)t
80
++Taxes
FVt
Dh.value
(1
D/E)
(1
Rr)t]
.total
r)t]
+=(1
=D$720
.rate/m)]m
+.+Tc)
(1
Ordinary
(S
FVt
$1,000
RDepreciation
=g)
1/(1
=+(S
h)
Cassets
.D+[1/(1
r)t
+C.$1/(1
pS(R)
 CD)
[5.1]
annuity
r)t)/r
1CP1+.D)
.Addition
+r)t
[6.2]
Present
Tcr)t]
(1.+value
[5.2]
+ g)[D/E]
F/(1
Tc
value
to+. r)t
retained
(1
factor
+ r) [6.1]
earnings

S[10.3]
P[10.4]
(P
OCF
Q[11.1]
[11.2]
=Total
Var(R)
[12.2]
Announcement
R[13.6]
[13.5]
p.P
E(RP)
[13.3]
[13.2]
L.2
UL.2
U.2
Risk
E(R)
.j[13.1]
Oj$4,218
Sales
$1,500
.(S
=(P
$3,700
+12%
E(RU)
20%
=.(FC
=QVC
E(R)
.2xL
x2
v)
2..j
=premium
Pj
(S
[(P
dollar
cash
return
risk
2==v)
C)
.+.vxx1
8%
[Oj
OCF)/(P
+FC
(1/(T
QCosts
.D)/(P
UCORRL,U.L.U
Rf
C700
if
518
U.Qv)
=Systematic
(S
=+(1
return
Systematic
=E(R1)
=DE(R)]2
FC
stock
.D)
Expected
1))
FC
Cv)
80
Q+Tc)
+Taxes
D+is
D[(R1
=v)
D+D)
FC
x2
.Dividend
$720
portion
DPj
[11.3]
sold
.risk
(S
return
part
.D]
Tc
E(R2)
R
Tc
=+C)Initial
+2income
DUnsystematic
+Unsystematic
Surprise
+D)
Unexpected
Risk-free
. . investment
+Tc
. Capital
[13.7]
+xn
+ (RT
rate
return
risk
.portion.
E(Rn)
gain
R+[13.9]
)2]
Total
[13.4]
(or
[12.3]
[13.8]
loss) [12.1]
return

RE(Ri)
Debt
Unlevered
Equity
=Number
L+E(R)
UL.2
PU.2
.2
NN
i=1
.x2
PN
..2
xj.i2
2=
COV(R2,RM)
j=1
RE
VRP
100%
WACC
fA
Portfolio
xj.ij
=.1,000,000/500,000
$5,000,000/$10
2+E[(R3)
60%
8%
=E(R)
Equity
x2
2xLxUCORRL,U.L.U
j=1
E.2(RM)
+(E/V)
(D1/P0)
Rf
=D/P0
=.+[13A.2]
Equity
of
RF
E/V
(E/V)
Rf
D+2[x1COV(R1,R2)
.10
+rights
new
+IFI
E
[14.3]
[14.4]
+firm
RF]3
=.[13A.4]
+E[(R1)
[E(RM)
+shares
.D/V
fE
Levered
40%
g+=needed
[RM
RE
=[14.5]
+GNPFGNP
[14.1]
.Equity
+500,000
(D/V)
.Equity
=.05
(D/V)
=Rf]
.RF]1
[13A.1]
Rf]
2firm
Funds
+.rights
to
.+[14.2]
E[(RK)
x2.22
.fD
+buy
(1
shares
=i
[14A.2]
RD
rFr
to
E[(R2)
[14.7]
.[13.10]
a.+Debt
TC)
be
share
x3
(1
+RF]K
raised/Subscription
.COV(R3,R2)
 [13.11]
[14A.1]
Debt
RF]2
TC)
of stock
[14.6]
.[13.12]
Equity
[13A.3]
= Old[14A.3]
shares/New
price [15.1]
shares [15.2]

Ro
Me
Re
Percentage
Degree
EBIT
Vu
E
Value
RE
(1
VL
Net
Operating
105
75
Cash
=Average
Opportunity
Trading
[19A.2]
[19A.1]
[16A.1]
DFL
TC
Current
$266,666.67
=days
days
working
=(Me
(Mo
Mo
of
EBIT/REu
RA
.A
.+
TC)
=VU
cycle
collections
of
[16.2]
DInterest
Long-term
costs
+.=.the
(.
=+1
daily
Ro
financial
(RA
(1
TC
liabilities
assets
cycle
105
S)/(N
S)/N
change
(1costs
=60
RD)
capital
[15.4]
+=.float
.interest
(1
Operating
DD/E)
days
[15.5]
VL
.RD)
=TS)
7.50
(T/C)
+=(other
[16.7]
debt
in
(D/E)
Tb)
=Inventory
1)
+=levrage
Beginning
.EPS
=+[16.5]
(C/2)
EL
45
30
days
EBIT
[15.3]
(D/E)
tax
Fixed
+(Cash
.Average
cycle
.+..=(1
Equity
than
Fdays
DLB=R$2,000,000
shield
[16.4]
+assets
period
[16.3]
cash)
accounts
Other
daily
 Accounts
+TC)
[16.1]
= +=[16.8]
Current
(TC
current
receipts
Long-term
Fixed
Accounts
receivable
.payable
RDassets
liabilities
..receivable
assets)
D)/RD
debt
Weighted
period
+ 1/2
+[16.6]
[18.2]
[18.3]
Equity
.[18.5]
average
period
Sales
[18.1]
[18.6]
[18.4][19.1]
delay

Cost
NPV
Score
[20.11]
Total
=[20.12]
Carrying
[20.13]
(Q*/2)
Q*2
[20.14]
2T
C*
[19A.3]
[20.15]
CC
[20.7]
U*
Average
[19A.6]
[19A.5]
Accounts
Cash
[20.2]
Q[20.3]
PV(Q/2)
F(C/2)
$2,900
($49
$3,190
.F
==.(T/Q)
Qof
of
(flow
3L[(P
=v
carrying
restocking
costs
0cost
2T
.CC
+switching
.C*
switching
Z=.R
.CC
(PQ)/[(P
cash
+.20)
costs
(3/4
receivable
=[PQ
F(new
(old
=(1
+)/R
v)(Q
+=0.4
F(T/C)
Opportunity
2.110
balance
.100
.F
FCarrying
=costs
.(T/Q*)
+[19A.4]
.L
policy)
.(T/Q)
)(P
.[Sales/Total
)P
cost
Restocking
v(Q
..2/R)1/3
=Q)]/R
=/.F
v)/R
[PQ
PQ
(1
===Average
+costs
v)/R
Average
=(4
Q)]
[20.4]
Fixed
+v(Q
R)
costs
(P
v]
.C*
v(Q
+costs
[20.8]
[20.9]
+(P
cost
assets]
Restocking
daily
v)Q
v)Q
inventory
+Q)
L)/3
Q)]
Trading
v)(Q
[20.5]
per
sales
+[19.A7]
+(P
order
3.0
.Carrying
costs
Q)/R
costs
.ACP
v)(Q
.EBIT/Total
.Number
[20.1]
Q)/R
costs
of[20.6]
assets
orders
per unit
[20.10]

Q* =. F
2T
CC =. F
2T
Q*
CC . 46,800) . $50
=(2
=0$00
2T
EOQ*
.75
2,498
6.,240,.
=F units
CC . 600) . $20
=(2
=$Net
(E[S1]
F1/S0
(F1
F1=
Ft
E[S1]
E[St]
RCDN
BNPV
C1
C1=
[25.2]
[25.1]
[23.1]
[21.10]
[21.9]
[21.8]
[21.7]
[21.6]
[21.5]
[21.4]
[21.3]
[21.2]
[21.1]
[20A.2]
[20A.1]
[20.18]
[20.17]
[20.16]
3889.44
,000
=incremental
=S00S0
Cost
S1
S0)/S0=
=PQ
V*
.units
hCDN
if
.(1to
ES0
S0)/S0=
[1
[1
(S1
if
+.+Firm
=+PQ(S1
RFC)/(1
+RFC
[1
(RFC
RFC
.E)
(RFC
cash
+(d
AhFC
(hFC
(RFC
E)
RCDN
of
0hFC
flow
+)/R
>RCDN)]
RCDN)]t
the
hCDN
0RCDN)
hCDN)]
hCDN)]t
RCDN)]
RCDN)]t
=acquisition
PQ . (d )

S0
[25.4]
[25.3]
Call
[25.5]
C0
[25.6]
d1
d2
[25A.2]
S0[ln(S0/E)
0
=S0
C0
option
S0
d1
if.N(d1)
+ES0E/(1
..
ifvalue
t S0
E+<(Rf
=0EStock
Rf)
Rf)t
E/(1
+0+1/2
Rf)t
value
..2)
.N(d2)
Present
.t]/[..
[25A.1]
t] value of the exercise price