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Formulas

This document contains financial information and calculations related to rates of return, cash flows, net present value, internal rate of return, earnings before interest and taxes, depreciation and amortization, taxes, cost of equity, weighted average cost of capital, and bond pricing. It includes tables with labels, values, and formulas to calculate various metrics for investment and financial analysis.

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YajZaragoza
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29 views9 pages

Formulas

This document contains financial information and calculations related to rates of return, cash flows, net present value, internal rate of return, earnings before interest and taxes, depreciation and amortization, taxes, cost of equity, weighted average cost of capital, and bond pricing. It includes tables with labels, values, and formulas to calculate various metrics for investment and financial analysis.

Uploaded by

YajZaragoza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Required rate of return = k 0.

18 Rate
Initial Cash Investment (outflow is -$) - 650,000.00 Nper
Cash Flow Year 1 (inflow is a +$) 325,000.00 FV
Cash Flow Year 2 (inflow is a +$) 325,000.00
Cash Flow Year 3 (inflow is a +$) 325,000.00 PV
₦712,337.34
NPV 62,337.34
₦62,337.34
7% Nominal Rate 9% Rate
10 Number of periods per year 12000 Nper
-700,000 PV
EAR 0.094174

$4,888,224.16 FV
8%
10
-25,000

$53,973.12
Free Cash Flow (FCF) Terminal Year free cash flow (FCF)

Revenue 700.00 Selling price 5000


- Operating Expenses 500.00 Value of Asset 1000
EBITDA(Earnings before interest, taxes,
Tax Rate
depreciation & amortisation) 200.00 0.30
Gain on sale
- D&A (Depreciation & Amortisation) 75.00 4000.00

Taxes on Gain
EBIT (Earnings before Interest & Taxes) 125.00 1200.00
x (1- t) (1 – tax rate) 0.65 Net Cash After Tax 3800.00
NOPAT (Net Operating Profit after Taxes) 81.25
+ D&A (Depreciation & Amortisation) 75.00
CF Opns (Cash flow from Operations) 156.25
- Cap Exp (Capital Expenditure) 100
- Add WC (Working Capital) 5 105
Free Cash Flow 51.25
cash flow (FCF)
Calculate the incremental annual cash flow from operations?

Revenue 660,000,000.00 Step 1 Revenue


- Operating Expenses - Step 2 Op expense
EBITDA(Earnings before interest, taxes,
depreciation & amortisation) 660,000,000.00 Step 3 D& A

- D&A (Depreciation & Amortisation) - Step 4 Apply Formula

EBIT (Earnings before Interest & Taxes) 660,000,000.00


x (1- t) (1 – tax rate) 0.60
NOPAT (Net Operating Profit after Taxes) 396,000,000.00
+ D&A (Depreciation & Amortisation) -
CF Opns (Cash flow from Operations) 396,000,000.00
- Cap Exp (Capital Expenditure)
- Add WC (Working Capital) 0
Free Cash Flow 396,000,000.00
Step 1 Revenue 660,000,000.00
Step 2 Op expense

Step 3 D& A

Step 4 Apply Formula


WACC Payback period

years before cost recovery + remaining cost to recover


cashflow during the year
Debt x (1-marginal rate) + cost of equity

#NAME?

Face Value 1,000.00


Coupon Rate 40.00 0.04
No of years 10.00
Rate of interest 0.02
BOND PRICE -1179.65
Given
WACC=E/V×Re+D/V×Rd×(1−Tc)
​ D 0.5
E is the market value of the company's equity.
D is the market value of the company's debt.
V is the total market value of the company's equity and debt (V=E+D).
Re is the cost of equity.
Rd is the cost of debt.
Tc is the corporate tax rate.
1210000
484000 660000
264000

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