Summary ULTIMATE FINANCE FORMULAE CHEAT SHEET

ULTIMATE FINANCE
CHEAT SHEET
(All the formular you will ever need just in one place!)
Alle formules die u ooit nodig zult hebben, op één plek!




Cash Flow from Assets
= Cash Flow to Creditors + Cash Flow to Stockholders
= Operating Cash Flow (OCF) - Net Capital Spending (NCS) - Additions to Net
Working Capital (NWC)



Cash Flow to Creditors
= - (Net New Borrowing)



Cash Flow to Equityholders
= Dividends Paid - (Net New Equity Raised) = (dividends – equity issued) –
(interest – new LT debt)

, Operating Cash Flow
= Net Income + Depreciation


Net Capital Spending
= End. Net Fixed Assets - Beg. Net Fixed Assets + Depreciation



Additions to Net Working Capital
= End. NWC - Beg. NWC


NWC = Current Assets - Current Liabilities



Personal Tax on Dividends
1. Grossed-up dividends = gross-up factor (1.25) x dividends
2. Gross federal tax = federal tax rate x grossed-up dividends
3. Federal dividend tax credit = federal dividend tax credit rate x
grossed-up dividends
4. federal dividend tax = gross federal dividend tax – federal dividend tax Credit



Ch 4: Time Value of Money

Future Value = I * (1+r)t


Present Value
= future value after t periods / (1+r)t
r = (FVPV )1/n – 1
Rule of 72: time for investment to double is 72/r