D Formulas Flashcards
(19 cards)
ROCE for an investment?
(Average annual operating profit / Initial investment) * 100
Average investment
(Initial investment + scrap value) / 2
Calculate 7% compund interest for 4 years?
$500 (1 + 0.07)^4
Effective annual interest rates (EAIR)
1 + EAIR = (1 + interest rate for a period)^Number of periods in a year
Perpetuity IRR?
(Annual cash inflows / Initial investment) * 100
Profitability index?
NPV of net cash inflows / Initial investment
Equivalent annual cost
NPV / Annuity factor
Sensitivty
(NPV / PV of relevant cash flow) * 100
Gross profit margin?
Gross profit / Sales *100
Operating profit margin?
Operating profit / Sales *100
Return on capital employed?
Operating profit / Capital employed * 100
Return on equity?
((PFY - Preference dividends) / Ordinary shareholders’ funds) * 100
Capital employed?
Shareholders’ funds + long-term liabilities
Total assets - current liabilities
Diluted EPS?
(PFY - preference dividends + PDS adjustments) / (Weighted average of ordinary shares in issue + PDS)
Dividend coverage?
(profit for the year - preference dividend) / Ordinary dividend
Dividend payout ratio?
(Ordinary dividend / (PFY - preference dividends)
Dividend yield?
(Dividend per ordinary share / Ordinary share price) * 100
Earnings yield?
(EPS / Ordinary share price) * 100
Total shareholder return?
((Year-end share price - Share price at start of year + dividneds for year) / Share price at start of year) * 100
