1. Discretionary Financing Needed Formula
Answer: Discretionary Financing Needed(DFN) = Projected Total Asset - Projected Total
Liabilities - Projected Equity
2. Sustainable Growth Rate Formula
Answer: Sustainable Gr
...
1. Discretionary Financing Needed Formula
Answer: Discretionary Financing Needed(DFN) = Projected Total Asset - Projected Total
Liabilities - Projected Equity
2. Sustainable Growth Rate Formula
Answer: Sustainable Growth Rate (SGR) = Returnon Equity (ROE) X (1-Divided Payout
Ratio)
3. Cash Flow from Operating Activities (CFO) Formula
Answer: Cash Flow from Operating Activities(CFO) = Net Income + Depreciation +/-
Decreases/Increasesin CurrentAssets +/- Increase/Decrease in Current Liabilities
4. Cash Flow form Investing Activities (CFI) = Change in PPE + DepreciationAnswer: Cash Flow from Investing Activities (CFI) Formula
5. Cash Flow from Financing Activities (CFF) Formula
Answer: Cash Flow from Financing Activities (CFF) = Change in Equity + Change in Long
Term Debt - Dividends paid
6. Gordon Growth Model Formula
Answer: Gordon Growth Model = (Expected Dividendat end of year)/(Required Rate of
Return - Dividend Growth Rate)
7. Degree of Operating Leverage (DoL) Formula
Answer: Degree of Operating Leverage(DoL) = (Sales Revenue - Variable Cost)/ Net Income
8. Annual PercentageYield (APY) Formula
Answer: Annual PercentageYield (APY) = (1
+ r/n)(n) - 1
r = stated annual interest rate
N = number of compounding periods.
9. Income Statement
Answer: Revenues = Amount generated by sale of products andservices
Expenses = Amount incurred to manufacture products Income = The difference between
revenues and expenses
10. Balance Sheet
Answer:
Assets = Items that are owned by the company
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