CFA Level IIFormula Sheet 4 - Corp Finance

http://www.cpa-cfa.orgCorporate Finance

Initial Outlay =

Cap Ex =

NWC investment =

After tax operating CF =

Depreciation Exp =

TNOCF =

Least common multiple lives approach =

Equivalent annual annuity approach (EAA) =

Economic income =

Economic profit (EP) =

Market Value Added (MVA) =

Business Risk =

DOL =

or

DOL =

DFL =

or

DFL =

1

CFA Level IIFormula Sheet 4 - Corp Finance

http://www.cpa-cfa.org

DTL =

Operating B/E in units =

Total B/E in units =

Effective tax rate =

Expected increase in Div =

Post Merger Shares O/S =

Post Merger EPS =

Post Merger P/E =

Target Shareholder Gain =

HHI =

Constant growth terminal value =

Cash flow multiple terminal value =

2

CFA Level IIFormula Sheet 4 - Corp Finance

http://www.cpa-cfa.orgComparable company valuation =

Comparable transaction valuation =

Take Over Premium Fair Price =

3