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CFA Level II

Formula Sheet 4 - Corp Finance


http://www.cpa-cfa.org
Corporate 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 II
Formula 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 II
Formula Sheet 4 - Corp Finance
http://www.cpa-cfa.org
Comparable company valuation =


Comparable transaction valuation =

Take Over Premium Fair Price =

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