Question
o What is new net financing? Be able to calculate it. o What is the percent of sales method? Be able to use it. o
o What is new net financing? Be able to calculate it.
o What is the percent of sales method? Be able to use it.
o What is the internal growth rate? Be able to calculate it.
o What is the sustainable growth rate? Be able to calculate it.
o What is the terminal value? Be able to calculate it.
o Be able to calculate the value of an expansion by calculating the:
o Present value of free cash flows
o Present value of the continuation value
o Present value of the interest tax shield
o Be able to calculate and forecast an income statement and balance sheet
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
