S79 Formulas

Question 1

Form 3

Answer 1

Individual becomes corp insider (i.e. officer, director or >10% SH) - Deadline: within 10 days

Question 2

Form 4

Answer 2

Corp Insider changes holdings - Deadline: within 2 business days

Question 3

Form 5

Answer 3

Corp insider reports transactions in sec’s not in public market - Deadline: 45 calendar days of fiscal year end

Question 4

13D

Answer 4

Statement of beneficial ownership of greater than 5% - active investors - Deadline: 10 calendar days of transaction. Promptly for any material change to ownership (1%) or intentions

Question 5

13G

Answer 5

Passive statement of beneficial ownership of greater than 5% - Deadline: 45 calendar days of calendar year end when owning >5%. If passive investor hits 10%, it must be filed at the end of that month If passive investor hits 20%, they must filed a 13D

Question 6

1.00E-02

Answer 6

Going Private - Deadline: Concurrently with a tender offer, registration statement, or other privatization document

Question 7

13F

Answer 7

Quarterly filing by institutional investment managers ($100mm+ in assets) - Deadline: 45 calendar days of quarter end

Question 8

Form 144

Answer 8

Corporate insider preparing to sell shares - Deadline: up to first day of 90-day period when shares are sold

Question 9

10Q

Answer 9

Quarterly financial report - Deadline: Large Accelerated - 40 calendar days Accelerated - 40 calendar days. Non-accelerated - 45 calendar days. Smaller Reporting - 45 calendar days

Question 10

10K

Answer 10

Annual financial report - Deadline: Large Accelerated - 60 calendar days Accelerated - 75 calendar days. Non-accelerated - 90 calendar days. Smaller Reporting - 90 calendar days

Question 11

8K

Answer 11

Current report - newsworthy items - Deadline: 4 business days of event

Question 12

PRE14A

Answer 12

Preliminary Proxy Statement - Deadline: Filed with SEC 10 days prior to definitive proxy

Question 13

DEF14A

Answer 13

Definitive Proxy Statement - Deadline: Distributed to shareholders and filed with SEC 20 days prior to shareholder meeting. If made available online, 40 days prior to shareholder meeting

Question 14

Schedule TO

Answer 14

Includes terms of a tender offer - Deadline: Filed to commence offer, must be made available for at least 20 business days

Question 15

Schedule 14D-9

Answer 15

Subject company board of directors’ response to a tender offer - Deadline: Due within 10 business days of the Schedule TO filing.

Question 16

S-3

Answer 16

Short form registration statement - used for follow-on offering

Question 17

S-4

Answer 17

Merger registration

Question 18

S-8

Answer 18

Employee Benefit plans

Question 19

S-11

Answer 19

REITS

Question 20

Current Yield

Answer 20

Annual Interest/Market Price

Question 21

Equity Value

Answer 21

Total shares outstanding * stock price, or enterprise value - net debt

Question 22

Enterprise Value

Answer 22

Equity Value + Debt - Cash + Preferred Stock + Non-Contrilling Interest

Question 23

Gross Profit Margin

Answer 23

Gross Profit/Sales

Question 24

EBITDA Margin

Answer 24

EBITDA/Sales

Question 25

Operating Margin

Answer 25

EBIT/Sales

Question 26

Net Profit Margin

Answer 26

Net Income/Sales

Question 27

Ending Shareholders Equity

Answer 27

Beginning SHE+Net Income-Dividends

Question 28

Total Debt

Answer 28

Loans + Bonds + Notes + Debentures + Capital Leases + Short Term Debt + Current Maturities of Long-Term Debt

Question 29

Basic EPS

Answer 29

Net Income / Reported Shares Outstanding

Question 30

Diluted EPS

Answer 30

Net Income / Diluted Shares Outstanding

Question 31

P/E Ratio

Answer 31

Stock Price / Earnings Per Share OR Equity Value / Net Income

Question 32

PEG Ratio

Answer 32

(P/E) / Annual Growth Rate

Question 33

Price-to-Book Ratio

Answer 33

Equity Value / Book Value of Equity OR Stock Price / Book Value per Share

Question 34

Price to Tangible Book Value

Answer 34

Equity Value / (Book Value of Equity ? Goodwill) OR Stock Price / Tangible Book Value per Share

Question 35

Dividend Yield

Answer 35

Annual Dividend / Stock Price OR Total Dividends / Market Cap

Question 36

Dividend Payout Ratio

Answer 36

Annual Dividend / Reported EPS OR Total Dividends / Net Income

Question 37

Earnings Yield

Answer 37

EPS / Stock Price OR Net Income / Equity Value OR 1 / (P/E)

Question 38

Name three enterprise value Multiples

Answer 38

EV/Sales, EV/EBITDA, EV/EBIT

Question 39

Interest Coverage Ratio

Answer 39

Adj. EBITDA / Interest Expense

Question 40

Debt-To-Capitalization Ratio

Answer 40

Total Debt / (Total Debt + Book Equity)

Question 41

Invested Capital

Answer 41

Average Equity + Average Net Debt

Question 42

ROA

Answer 42

Net Income / Average Assets

Question 43

ROE

Answer 43

Net Income / Average Shareholders’ Equity

Question 44

ROIC

Answer 44

Adj. EBIT / Invested Capital; Or EBIAT / Invested Capital

Question 45

ROC

Answer 45

Net Income / Invested Capital

Question 46

Accounts Receivable Turnover

Answer 46

Sales / Average Accounts Receivable

Question 47

Days Sales Outstanding

Answer 47

(Average Accounts Receivable / Sales) × 365

Question 48

Inventory Turnover

Answer 48

COGS / Average Inventory

Question 49

Days Inventory Held (DIH)

Answer 49

(Average Inventory / COGS) × 365

Question 50

Accounts Payable Turnover

Answer 50

COGS / Average Accounts Payable

Question 51

Days Payable Outstanding

Answer 51

(Average Accounts Payable / COGS) × 365

Question 52

Equity Turnover

Answer 52

Sales / Average Shareholders’ Equity

Question 53

Current Ratio

Answer 53

Current Assets / Currents Liabilities

Question 54

Quick Ratio

Answer 54

(Current Assets – Inventory) / Currents Liabilities

Question 55

Implied Enterprise Value

Answer 55

Sales × (EV/ Sales) OR EBITDA × (EV/ EBITDA) OR EBIT × (EV/ EBIT)

Question 56

Implied Equity Value

Answer 56

Net Income × P/E Multiple

Question 57

Implied Stock Price

Answer 57

EPS × P/E Multiple

Question 58

WACC

Answer 58

(After Tax Cost of Debt*(debt/debt+equity))+(Cost of Equity)*(equity/debt+equity))

Question 59

Cost of Debt

Answer 59

Current Yield × (1 – Tax Rate)

Question 60

Cost of Equity (CAPM)

Answer 60

Risk-Free Rate + (Levered Beta × Market Risk Premium)

Question 61

Market Risk Premium

Answer 61

S&P 500 Expected Return – Risk Free Rate

Question 62

Levered beta

Answer 62

Unlevered Beta x [1 + (1 – Tax Rate) x Debt/Equity]

Question 63

Unlevered Free Cash Flow

Answer 63

EBIAT + D&A – CAPEX – Increase in Net Working Capital

Question 64

Free Cash Flow to Firm (FCFF)

Answer 64

EBIAT + D&A – CAPEX – Increase in Net Working Capital

Question 65

Implied EV by perpetuity growth

Answer 65

[Free Cash Flow x (1 + Growth Rate)]/ (Discount Rate – Growth Rate)

Question 66

Implied stock price by dividend discount model

Answer 66

[Annual Dividend x (1 + Growth Rate)]/ (Discount Rate – Growth Rate)

Question 67

Economic Value Added

Answer 67

EBIAT – (Purchase Price x Discount Rate)

Question 68

Effective EBITDA Multiple

Answer 68

(EBITDA x Purchase Multiple) / (EBITDA + Synergies)

Question 69

Maximum Purchase Price

Answer 69

(EBITDA x Max Leverage Multiple) – current debt + cash

Question 70

338 Election

Answer 70

§338 (including its various subsections such as §338(h)(10) of the Internal Revenue Code permits, if all conditions are met, a stock sale to be treated as an asset sale for tax purposes. This allows the seller the benefits of a stock sale (i.e. clean exit of the business) and provides the buyer with potential value enhancement from the tax shield generated from the asset step-up.