Midterm Flashcards
(7 cards)
1
Q
Pratt Analysis
A
ROE = ROA(NOPAT)*CEL*CSL where ROA(NOPAT) = NOPAT Margin*Asset turnover
2
Q
Free cashflows to common equity from income statement and balance sheet
A
Comprehensive net income - (CEt - CEt-1)
3
Q
Operating CF before working capital
A
After tax interest expense, non operating losses, long-term operating accruals
4
Q
CF: operating CF before lt capital investment
A
Net investment in operating working capital
5
Q
Free CF to debt and equity
A
Investment in LT operating assets, proceeds from sale of LT operating assets
6
Q
Free CF to equity
A
After tax interest expense from above, Net debt issuance, net investment in short-term financial assets
7
Q
Net increase or decrease in cash balance
A
Stock issuance, dividends, loss or gain on exchange rates
