0
[Free Cash Flows (1 + growth rate)] / (WACC - growth rate)
Example: Weighed Average Cost of Capital = 12%
FCF = $400,000 (Found by EBIT (1 - Tax rate) - net change in operating Capital
Growth Rate = 5%
(400,000 x 1.05) / (.12 - .05) = $6,000,000 = Value of Operations
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What is a combination of numbers and operations?
A combination of numbers and operations is called a Numerical Expression.
What is the present value of 3 year annuity of 100 if discount rate is 6%?
The formula for the present value of an annuity due. The present value of an annuity due is used to derive the current value of a series of cash payments that are expected to be made on predetermined future dates and in predetermined amounts.
What is the current value of a future sum of money called?
present value
Formula for percent error?
Percent Error = {Absolute value (Experimental value - Theoretical Value) / Theoretical Value }*100
What is the Mathematical formula for OHMS law?
Current = voltage/resistance
Why does adding more resistance result in less current?
As the name implies, resistance resists current. In the mathematical formula, where E is electromotive force (voltage):- I = E/R If you increase the value of R (resistance), then the value of I (current) decreases.
What is the present value formula?
It gives you the current value of an investment based on a fixed interest rate and payment schedule. See the link below for more information.
How do you adjust for inflation using the formula?
To adjust for inflation using the formula, you can use the following equation: Adjusted Value Original Value x (Current CPI / Base CPI). This formula helps account for changes in the purchasing power of money over time due to inflation.
What is is the dimensional formula of electric current?
The dimensional formula of electric current is [I] = [A], where I represents current and A represents ampere.
What is a combination of numbers and operations?
A combination of numbers and operations is called a Numerical Expression.
What does each letter stand for in the formula PV X I?
PV stands for present value, which represents the initial or current value of an investment. X represents the multiplication operation in the formula. I stands for the interest rate, which is the percentage return earned on the investment.
What is the current value of the SPX500USD index?
The current value of the SPX500USD index is approximately current value.
What is the formula to calculate secondary current?
The secondary current is calculated by dividing the secondary current by the impedance of the load. This value shouldn't exceed the secondary-winding's rated current except for short periods of time.
What is the order in which calculations are performed in a formula?
The order in which calculations are performed in a formula is called the order of operations.
What is the formula used to figure out cost of equity?
The formula for cost of equity is equal to the growth rate of dividends added to the quotient of dividends per share divided by the current market value of stock.
How is present value annuity factor calculated?
The present value annuity formula is used to simplify the calculation of the current value of an annuity. A table is used where you find the actual dollar amount of the annuity and then this amount is multiplied by a value to get the future value of that same annuity.
What is the formula for current ratio?
current ratio = current asset divided by current liability
