Create an account
3 Aspects of Role of Financial Manager:
-Working Capital Management
Pro-Forma Financial Statements:
-External Financing Needed (EFN) or Discretionary Financing Needed (DFN) [Definition and Calculation]
Restrictive Short-Term Financial Policy
-Size of Current Assets
-Carrying Costs vs. Shortage Costs
-Financing of Current Assets
-Temporary vs. Permanent Current Assets
Marginal Tax Rate =
Reference Tax Table Provided; Rate of extra tax you would pay if you earned one more dollar
External Financing Needed (EFN) =
Projected Total Assets - Projected Total Liabilities - Projected Owners' Equity
Debt-Equity Ratio =
Total Debt/Total Equity
(Note: You can manipulate the Debt-Equity formula and the A = L + E formula to solve for beginning equity.)
Present Value of Perpetuity =
(Note: Interest rate is calculated as decimal #; match numerator and denominator as quarterly, semiannual, annual, etc.)
Effective Annual Rate (EAR) = [1 + (Quoted Rate/m)]m -1]
(Note: You may also use the NOM%, I/Yr, and EFF% calculator keystrokes for shortcut.)
Quoted Rate =
Quoted Rate = Annual Percentage Rate (APR)
m = number of compounding periods per year
3rd Month Interest =
(Original Principal - 1st Month Principal - 2nd Month Principal) x Monthly Interest Rate
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