Principles of Corporate Finance

The DuPont System ROE = equityassets x assetssales x EBITsales- taxes x EBITEBIT- taxes- taxes- interest leverage ratio asset tu ...

u Short Term Financial Planning Principles of Corporate Finance Brealey and Myers Sixth Edition Chapter 29 ...

Topics Covered w Working Capital w Links Between Long-Term and Short-Term Financing w Tracing Changes in Cash and Working Capita ...

Working Capital Net Working Capital - Current assets minus current liabilities. Often called working capital. Cash Conversion Cy ...

Firm’s Cumulative Capital Requirement Lines A, B, and C show alternative amounts of long-term finance. Strategy A: A permanent c ...

Working Capital Simple Cycle of operations Cash ...

Working Capital Simple Cycle of operations Cash Raw materials inventory ...

Working Capital Simple Cycle of operations Cash Finished goods inventory Raw materials inventory ...

Working Capital Simple Cycle of operations Cash Finished goods inventory Receivables Raw materialsinventory ...

Working Capital Simple Cycle of operations Cash Finished goods inventory Receivables Raw materialsinventory ...

Changes in Cash & W.C. Example - Dynamic Mattress Company Total Assets 95 115 owner's equity 95 115 Net Fixed Assets 40 50 T ...

Changes in Cash & W.C. Example - Dynamic Mattress Company Income Statement Sales $350 Operating Costs 321 Depreciation 4 EBI ...

Changes in Cash & W.C. Example - Dynamic Mattress Company Increase in cash balance $ 1 Total Uses $30 Dividend 1 Increased a ...

Changes in Cash & W.C. Example - Dynamic Mattress Company Dynamic used cash as follows: w Paid $1 mil dividend. w Repaid $5 ...

Cash Budgeting Steps to preparing a cash budget Step 1 - Forecast the sources of cash. Step 2 - Forecast uses of cash. Step 3 - ...

Cash Budgeting Example - Dynamic Mattress Company Dynamic forecasted sources of cash AR ending balance = AR beginning balance + ...

Cash Budgeting Example - Dynamic Mattress Company Dynamic collections on AR Qtr 1st 2nd 3rd 4th Beginning receivables 30.0 32.5 ...

Cash Budgeting Example - Dynamic Mattress Company Dynamic forecasted uses of cash w Payment of accounts payable w Labor, adminis ...

Cash Budgeting Example - Dynamic Mattress Company Dynamic cash budget Net (sourcescash minusinflow uses) $46.5 $15.0 $26.0 $35.0 ...

Cash Budgeting Example - Dynamic Mattress Company Dynamic short term financing requirements $46.5 $61.5 $35.5 -$.5 minus caash a ...