Summary Extensive formula and ratio's sheet. ALL FORMULA'S Explained in detail
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Module
Corporate Finance & Behaviour (ECB2FIN)
Institution
Universiteit Utrecht (UU)
Book
Principles of Corporate Finance / Brealey
Extensive formula and ratio's sheet. ALL FORMULA'S Explained in detail. I made this, because I didn't have much finance background for this course. So all formula's are explained very detailed.
I got an 8.7 for the exam so it really helped me!
Solution Manual for Principles of Corporate Finance 14th Edition Author:Richard Brealey, Stewart Myers, Franklin Allen and Alex Edmans, All Chapters[1-34]Latest Version
Bullet Points on factors that determine dividend payout policy
Solution Manual For Principles of Corporate Finance 14th Edition By Richard Brealey Stewart Myers Franklin Allen and Alex Edmans, Complete Chapters 1-33 2024-2025.
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Economics And Business Economics
Corporate Finance & Behaviour (ECB2FIN)
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CORPORATE FINANCE AND BEHAVIOR
University Utrecht 2020/2021
Summary all lectures and book
Course code: ECB2FIN
Chapter 8, 13, 17, 18, 20, 21, 28, 30, 27
Grift, A. van der
, Author: A. van der Grift
Ratio's
• Debt - equity ratio can be bigger than 1
• Quick ratio is always less than current ratio
• Return on equity can be bigger than return on assets
Name Abbreviation Formula Explanation
After tax interest = (1 − 𝑡𝑐) ∙ 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠 Expenses or interest payment
Average account = (365 days)/(Account Payables
payables Turnover Ratio)
conversion period
Average account = (Cost of Goods Sold)/(Average
payables turnover Account Payables)
Average account = (Total Credit Sales)/(Average AR)
receivables
turnover ratio
Average collection 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠
= 𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑒𝑠
period 365
Average collection = (365 days)/(Average Account
period Receivables Ratio)
(or: ACP = (Average AR)/((Total
Credt Sales)/365) )
Cash ratio 𝐶𝑎𝑠h+𝑚𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑠𝑒𝑐𝑢𝑟𝑖𝑡𝑖𝑒𝑠
=
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Current ratio 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Debt ratio 𝐷 D = Debt
= 𝑉
V = Total value of company (debt + equity)
Author: A. van der Grift
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