Embedded Files
<?xml version="1.0" encoding="UTF-8"?>
<math id="1.0">
<FinancialEquations>
<equation id="0" text=".name" equation=".value" value=""
result="" />
<equation id="1" text="Capital Rates for Growth Stocks"
equation="Value=Current(Normal)Earnings * (8.5 plus twice the expected annual growth rate)"
value="" result="" />
<equation id="2" text="Return on Invested Capital"
equation="ROIC=Owner Earnings / Invested Capital" value="" result="" />
<equation id="3" text="Owners Earnings"
equation="Operating profit + depreciation + amortization of goodwill - Federal income tax - cost of stock options - maintenance capital expenditures - an income generated by unsustainable rate of return on pension funds"
value="" result="" />
<equation id="4" text="Invested Capital"
equation="Total assets - cash + accounting charges that reduced invested capital"
value="" result="" />
<equation id="5" text="Equity" equation="Equity = Assets - Liability"
value="" result="" />
<equation id="6" text="Assets" equation="Assets = Liabilities + Equity"
shorthand="A = L + E" value="" result="" />
<equation id="7" text="Net margin" equation="Net margin = net income/sales"
value="" result="" />
<equation id="8" text="Asset turnover"
equation="Return on assets = net margin * asset turnover" value=""
result="" />
<equation id="9" text="Financial Leverage"
equation="Financial Leverage = assets / shareholder's equity" value=""
result="" />
<equation id="10" text="Return on equity"
equation="Return on equity = return on assets * financial leverage"
value="" result="" />
<equation id="11" text="Return on assets"
equation="Return on assets = net margin * asset turnover * financial leverage"
value="" result="" />
<equation id="12" text="Free cash flow"
equation="Free cash flow = cash flow from operations - capital spending"
value="" result="" />
<equation id="13" text="Discount rate" equation="R=CFn/(I+R)n"
CFn="12.88 billion" R="0.11" N="11" value="" result="4.536 billion" />
<equation id="14" text="Perpetuity Rate" equation="CFn(I+g)/(R-g)"
value="" result="" />
<equation id="15" text="Free cash flow" equation="FCF = FCF / (1+R)N"
value="" result="" />
<equation id="16" text="Discount Perpetuity Value" equation="DPV = PV / (1 + R)10"
value="" result="" />
<equation id="17" text="Total Equity Value"
equation="TEV = Discounted Perpetuity Value + 10 Discounted Cash Flow"
value="" result="" />
<equation id="18" text="Per Share Value"
equation="PSV = Total Equity Value / Shares Outstanding" value=""
result="" />
<equation id="19" text="Earnings Per Share Value"
equation="EPS = company's net worth / average number of common stock shares outstanding"
value="" result="" />
<equation id="20" text="Price earnings ratio" equation="P/E = EPS / 12"
value="" result="" />
<equation id="21" text="Volatility"
equation="Volatility % = (high price-low price)/(average of high + low price) * 100"
value="" result="" />
<equation id="22" text="Bond maturity"
equation="Maturity = (annual interest payment + annually accumulated discount)/(average of par value and current private) * 100"
value="" result="" />
<equation id="23" text="Expenses" equation="Expenses = price/month * 12 months"
value="" result="" />
<equation id="24" text="Income" equation="Income = price/month * 12 months"
value="" result="" />
<equation id="25" text="Cash flow" equation="Cash Flow = Expenses - Income"
value="" result="" />
<equation id="26" text="Tax free yield"
equation="Taxable equivalent yield = tax free rate / federal tax bracket"
value="" result="" />
<equation id="27" text="Total costs"
equation="Total costs = fixed costs + variable costs" value=""
result="" />
<equation id="28" text="Total revenues"
equation="Total revenues = revenues at 10 unit price" value=""
result="" />
<equation id="29"
text="Break even point (total costs = total revenues)" equation="Break even point at 10 unit price = 4000 units"
value="" result="" />
<equation id="30" text="Annual Salary"
equation="Annual Salary = hourly rate * 40 hours * 52 weeks" value=""
result="" />
<equation id="31" text="Growth Allocation"
equation="Growth Allocation = 85 stocks / 10 bonds / 5 Cash equivalent"
value="" result="" />
<equation id="32" text="Moderate Allocation"
equation="Moderate Allocation = 60 stocks / 40 bonds / 10 Cash equivalent"
value="" result="" />
<equation id="33" text="PE Ratio"
equation="PE Ratio = market price / earnings per share" value=""
result="" />
<equation id="34" text="Compounding 5000 * 10%"
equation="Annually 12,968. Monthly 13,535, Daily 13,589" value=""
result="" />
<equation id="35" text="Rule of 72, how long a sum will double"
equation="72/interest rate" value="72/8=9 years" result="" />
<equation id="36" text="Rule of 72, inflation rate 4"
equation="72/4" value="72/4=18 years" result="" />
<equation id="37" text="Net Working Capital"
equation="Net Working Capital = Current Assets - Current Liabilities "
value="" result="" />
<equation id="38" text="Income" equation="Income = revenue - expenses"
value="" result="" />
<equation id="39" text="Gross Margin"
equation="Gross Margin = Sales - Direct Costs of Goods Sold" value=""
result="" />
<equation id="40" text="Costs of Goods"
equation="Costs of Goods = Beginning Inventory + New Purchases"
value="" result="" />
<equation id="41" text="Non Current Assets"
equation="Current Assets + Noncurrent Assets = Current Liabilities + Owners Equity"
shorthand="CA + NCA = CL + NCL + OE" value="" result="" />
<equation id="42" text="Liquidity Ratio"
equation="Liquidity Ratio = Current Assets / Current Liabilities"
value="" result="" />
<equation id="43" text="Long Term Debt Capital"
equation="Long Term Debt Capital = Long term debt / (Liabilities + Owners Equity)"
value="" result="" />
<equation id="44" text="Asset Turnover per period"
equation="Asset Turnover per period = Sales / Total Assets" value=""
result="" />
<equation id="44" text="Inventory Turnover per period"
equation="Inventory Turnover per period = Cost of Goods / Average Inventory Held"
value="" result="" />
</FinancialEquations>
</math>
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