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
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