The document summarizes key concepts from chapters 6-14 of a finance textbook relating to risk and return, time value of money, bonds, stock valuation, cost of capital, capital budgeting, and cash flow estimation. It defines terms like expected rate of return, risk measures like standard deviation and beta, bond and stock valuation methods, weighted average cost of capital (WACC), net present value (NPV), internal rate of return (IRR), modified IRR, payback period, and cash flow items like net operating working capital, operating cash flow, and free cash flow. Formulas and calculator instructions are provided for computing many of these concepts.
5 a framework for reformulating financial statementsJohn McSherry
The document discusses key concepts related to analyzing financial statements. It explains:
1) The relationship between a firm's operating and financing activities and how cash flows between these activities and capital markets.
2) How to reformulate traditional financial statements into an operating and financing framework to better analyze a firm's profitability and value generation.
3) Key metrics like return on net operating assets, return on net financial assets, and net borrowing cost that can be used to assess a firm's performance when statements are presented in the reformulated format.
finance account banks business banker acceptance open account international financial management slide Factoring Forfeiting counter trade Definition example method of settling payment for trade transactions 2014
Barter.Counter-purchase.Buyback.
This document discusses depository institutions such as commercial banks, savings and loan associations, savings banks, and credit unions. It describes their key characteristics and activities. Depository institutions obtain funds from deposits and use those funds to generate income through loans and investments. They face asset-liability problems in managing the mismatch between long-term assets and short-term liabilities. Regulators monitor various risks at these institutions including credit, liquidity, market, and operational risk. The document provides examples of major depository institutions in the Philippines within each category.
5 a framework for reformulating financial statementsJohn McSherry
The document discusses key concepts related to analyzing financial statements. It explains:
1) The relationship between a firm's operating and financing activities and how cash flows between these activities and capital markets.
2) How to reformulate traditional financial statements into an operating and financing framework to better analyze a firm's profitability and value generation.
3) Key metrics like return on net operating assets, return on net financial assets, and net borrowing cost that can be used to assess a firm's performance when statements are presented in the reformulated format.
finance account banks business banker acceptance open account international financial management slide Factoring Forfeiting counter trade Definition example method of settling payment for trade transactions 2014
Barter.Counter-purchase.Buyback.
This document discusses depository institutions such as commercial banks, savings and loan associations, savings banks, and credit unions. It describes their key characteristics and activities. Depository institutions obtain funds from deposits and use those funds to generate income through loans and investments. They face asset-liability problems in managing the mismatch between long-term assets and short-term liabilities. Regulators monitor various risks at these institutions including credit, liquidity, market, and operational risk. The document provides examples of major depository institutions in the Philippines within each category.
This document summarizes key concepts from Chapter 5 of the textbook "Fundamentals of Financial Management" regarding risk and return. It defines return, expected return, risk, and standard deviation as measures of risk. It provides examples of how to calculate expected return and standard deviation for discrete distributions. It also discusses risk attitudes, portfolio return and risk, systematic and unsystematic risk, and the Capital Asset Pricing Model.
The document discusses private equity funding and foreign venture capital investors. It provides an overview of private equity, including forms of private equity funding like angel investors, venture capital, and private equity. It describes the general private equity investment process and discusses valuations, structures and instruments, and exit options. The document also provides regulatory information regarding foreign venture capital investors and different fund structures they can utilize like offshore funds, onshore funds, and co-investment funds.
BlackRock is the largest asset management firm globally, managing over $4.77 trillion in assets. It offers a wide range of products including mutual funds, ETFs, and advisory services. BlackRock has a history of acquisitions that have expanded its capabilities. It faces competition from other large asset managers but maintains strength in its brand, scale, and risk management platform called Aladdin. Both opportunities in emerging markets and threats from regulation and economic downturns could impact BlackRock's future performance.
This document describes Opportunity Partners Fund II, LP and its investment strategy. The fund will pursue opportunistic purchases of distressed real estate assets in the Twin Cities area that have been significantly devalued due to the economic downturn and tight credit markets. The general partner has over 100 years of combined real estate experience and successfully executed a similar strategy with Fund I, achieving returns above targets. Fund II seeks $25 million in commitments to continue acquiring undervalued properties with a focus on downside protection and strong potential returns.
Défini comme une technique structurée destinée à fournir du capital aux entreprises émergentes à croissance élevée.
La définition de l'association Française des Investisseurs en Capital (AFIC) « C'est un financement en vrais fonds propres », c'est-à-dire exposé aux risques de l'entreprise ; sans garantie ni de l'entrepreneur ni de la société ; sous forme de prise de participation en capital souvent minoritaire pour une durée limitée de 3, 5 ou 7 ans le plus généralement.
This document discusses various methods for valuing long-term securities such as bonds and stocks. It defines important terms related to bond valuation such as coupon rate, maturity value, and discount rate. It also covers the valuation of different types of bonds such as perpetual, coupon, and zero-coupon bonds. Additionally, it discusses preferred stock and common stock valuation using the dividend valuation model and different dividend growth assumptions. The document provides an example of how to calculate the yield to maturity of a bond.
The Arbitrage Pricing Theory (APT) provides an alternative to the Capital Asset Pricing Model (CAPM) for estimating expected returns. The APT assumes returns are generated by multiple systematic risk factors rather than a single market factor. It allows for assets to be mispriced and does not require assumptions of a market portfolio or homogeneous expectations. Under the APT, the expected return of an asset is equal to the risk-free rate plus the product of each risk factor's premium and the asset's sensitivity to that factor.
The document summarizes a presentation given at EMC Zurich Munich 2007 about circuit extraction for transmission lines. It discusses developing transmission line models using DFF and DFFz polynomials to represent voltages and currents. It presents the half-T ladder network representation and describes extracting poles and residues in closed form to develop the model's two-port representation. It also covers model order reduction techniques to select a reduced set of poles within a fixed bandwidth.
The document discusses the unified charge control model (UCCM) for MOSFET modeling. It presents the equations that define the UCCM and approximations used. Threshold voltage VT0 is defined as the gate voltage when the pinch-off voltage VP is 0. An example calculates VT0 for an n-channel MOSFET as 0.1V given parameters like flat-band voltage and oxide thickness. The relationship between pinch-off voltage VP and gate voltage VG is also examined.
This document summarizes key concepts from Chapter 5 of the textbook "Fundamentals of Financial Management" regarding risk and return. It defines return, expected return, risk, and standard deviation as measures of risk. It provides examples of how to calculate expected return and standard deviation for discrete distributions. It also discusses risk attitudes, portfolio return and risk, systematic and unsystematic risk, and the Capital Asset Pricing Model.
The document discusses private equity funding and foreign venture capital investors. It provides an overview of private equity, including forms of private equity funding like angel investors, venture capital, and private equity. It describes the general private equity investment process and discusses valuations, structures and instruments, and exit options. The document also provides regulatory information regarding foreign venture capital investors and different fund structures they can utilize like offshore funds, onshore funds, and co-investment funds.
BlackRock is the largest asset management firm globally, managing over $4.77 trillion in assets. It offers a wide range of products including mutual funds, ETFs, and advisory services. BlackRock has a history of acquisitions that have expanded its capabilities. It faces competition from other large asset managers but maintains strength in its brand, scale, and risk management platform called Aladdin. Both opportunities in emerging markets and threats from regulation and economic downturns could impact BlackRock's future performance.
This document describes Opportunity Partners Fund II, LP and its investment strategy. The fund will pursue opportunistic purchases of distressed real estate assets in the Twin Cities area that have been significantly devalued due to the economic downturn and tight credit markets. The general partner has over 100 years of combined real estate experience and successfully executed a similar strategy with Fund I, achieving returns above targets. Fund II seeks $25 million in commitments to continue acquiring undervalued properties with a focus on downside protection and strong potential returns.
Défini comme une technique structurée destinée à fournir du capital aux entreprises émergentes à croissance élevée.
La définition de l'association Française des Investisseurs en Capital (AFIC) « C'est un financement en vrais fonds propres », c'est-à-dire exposé aux risques de l'entreprise ; sans garantie ni de l'entrepreneur ni de la société ; sous forme de prise de participation en capital souvent minoritaire pour une durée limitée de 3, 5 ou 7 ans le plus généralement.
This document discusses various methods for valuing long-term securities such as bonds and stocks. It defines important terms related to bond valuation such as coupon rate, maturity value, and discount rate. It also covers the valuation of different types of bonds such as perpetual, coupon, and zero-coupon bonds. Additionally, it discusses preferred stock and common stock valuation using the dividend valuation model and different dividend growth assumptions. The document provides an example of how to calculate the yield to maturity of a bond.
The Arbitrage Pricing Theory (APT) provides an alternative to the Capital Asset Pricing Model (CAPM) for estimating expected returns. The APT assumes returns are generated by multiple systematic risk factors rather than a single market factor. It allows for assets to be mispriced and does not require assumptions of a market portfolio or homogeneous expectations. Under the APT, the expected return of an asset is equal to the risk-free rate plus the product of each risk factor's premium and the asset's sensitivity to that factor.
The document summarizes a presentation given at EMC Zurich Munich 2007 about circuit extraction for transmission lines. It discusses developing transmission line models using DFF and DFFz polynomials to represent voltages and currents. It presents the half-T ladder network representation and describes extracting poles and residues in closed form to develop the model's two-port representation. It also covers model order reduction techniques to select a reduced set of poles within a fixed bandwidth.
The document discusses the unified charge control model (UCCM) for MOSFET modeling. It presents the equations that define the UCCM and approximations used. Threshold voltage VT0 is defined as the gate voltage when the pinch-off voltage VP is 0. An example calculates VT0 for an n-channel MOSFET as 0.1V given parameters like flat-band voltage and oxide thickness. The relationship between pinch-off voltage VP and gate voltage VG is also examined.
The document provides formulas related to physics. It includes formulas for radioactivity, exponential decay, capacitors, harmonic oscillators, gravitation, Doppler shift, ideal gases, electromagnetic machines, electric and magnetic fields, quantum mechanics, ionizing radiation, and general physics. Key formulas include the half-life equation, capacitance equation, period of a pendulum, ideal gas law, transformer equations, Coulomb's law, De Broglie wavelength, exponential attenuation of gamma radiation, and density equation.
This document discusses efficient algorithms for computing the discrete Fourier transform (DFT), specifically the fast Fourier transform (FFT). It covers several FFT algorithms including decimation-in-time, decimation-in-frequency, and the Goertzel algorithm. The decimation-in-time algorithm recursively breaks down the DFT computation into smaller DFTs by decomposing the input sequence. This allows the computation to be performed in O(NlogN) time rather than O(N^2) time for a direct DFT computation. The document also discusses optimizations like in-place computation to reduce memory usage.
The document describes the transform and quantization processes used in H.264 video compression. It discusses how the discrete cosine transform is approximated using integer arithmetic. The forward and inverse processes are derived from each other. Scaling matrices are incorporated to normalize values and minimize computational complexity while maintaining good compression performance. Quantization values are specified in the standard through scaling matrices.
This document provides an overview of MOSFET modeling concepts including:
1. Symmetry properties and normalization of the drain current equation.
2. Definitions of the forward and reverse currents, and the specific (normalization) current.
3. Description of the pinch-off voltage, slope factor, and their determination as functions of gate voltage.
The document is an exam for the Caribbean Examinations Council's Secondary Education Certificate in Mathematics. It contains 8 questions testing various math skills like algebra, geometry, trigonometry, and statistics. The exam is 2 hours and 40 minutes long and students must answer all questions in Section I and any two questions in Section II. Working must be shown clearly and formulas are provided.
The document discusses production functions in the long run. It defines production functions as tools that express the relationship between production inputs like capital and labor, and the resulting output. In the long run, production functions assume that both capital and labor are variable inputs that firms can adjust. Isoquant curves illustrate combinations of capital and labor that produce the same output level. The slopes of isoquant curves indicate the marginal rate of technical substitution between inputs. Returns to scale refer to how output changes proportionally with changes in all inputs, and can exhibit increasing, constant, or diminishing patterns.
IJERD (www.ijerd.com) International Journal of Engineering Research and Devel...IJERD Editor
This document summarizes an article from the International Journal of Engineering Research and Development that presents a design for a highly linear Operational Transconductance Amplifier (OTA). The OTA combines two linearization techniques: 1) adaptive biasing of the differential pairs using a circuit that biases the tail current based on the quadratic input voltage to cancel non-linearity, and 2) resistive source degeneration to account for mobility reduction in short channel devices. Simulation results using a 0.18um CMOS technology show that the third order harmonic distortion remains below -60dB for a 300mV peak-to-peak differential input at 3MHz frequency, demonstrating high linearity. The design aims to provide distortion-free and interference-
The document summarizes a lecture on packet routing algorithms for hypercubes, including analyzing the expected time for a random routing algorithm to route packets from source to destination in two phases. It then discusses primal-dual algorithms for solving multi-commodity flow problems on networks and how they maintain constraints for both the primal and dual optimization problems through an iterative process of adjusting primal and dual variables.
This document proposes a Mahalanobis kernel for hyperspectral image classification based on probabilistic principal component analysis (PPCA). The PPCA model captures the cluster structure of each class in a lower-dimensional subspace. This model is used to define the hyperparameters for the Mahalanobis kernel. Experimental results on simulated and real hyperspectral images show the PPCA-based Mahalanobis kernel achieves better classification accuracy than Gaussian and PCA-based kernels. Future work includes optimizing the hyperparameters and estimating the number of principal components.
This document discusses various techniques for reducing power consumption at different levels of digital design. At the gate level, power can be reduced by optimizing device sizing and fanout. Multiple supply voltages can be used within the same design to lower voltage in non-critical paths. At the architecture level, clock gating is introduced to power gate idle components. Clock gating finite state machines can reduce power based on the current state. Tradeoffs between power and delay can be achieved by adjusting the supply voltage.
The convenience yield implied by quadratic volatility smiles presentation [...yigalbt
This document discusses the implied convenience yield from quadratic volatility smiles in options. It presents formulas to calculate the implied convenience yield for illiquid options based on using liquid at-the-money options as hedging instruments. The formulas depend on observable market parameters like volatility and are meant to provide a simple way to compute the implied convenience yield without historical data assumptions. However, the model relies on several undefined expressions and economic assumptions that are not fully clear.
This document shows how to compute and graph the Fourier series coefficients for a square wave signal using a TI-89 calculator. It defines the Fourier series and integral used to calculate the complex coefficients. For a square wave example, it evaluates the integral to find the coefficients, plots the coefficients, and reconstructs the original square wave signal from the coefficients. Increasing the number of terms in the summation improves the approximation of the square wave.
This document discusses real option valuation techniques for technology projects. It begins by providing examples of real options like options to abandon or expand a project. It then covers various valuation models like decision trees, binomial models, and Monte Carlo simulations. These models can value flexibility and account for uncertainty. The document concludes by discussing Captum Capital which provides valuation and consulting services, including upcoming events on their valuation masterclass and workshop on technology evaluation.
This document summarizes research on developing an efficient higher-order accurate unstructured finite volume algorithm for inviscid compressible fluid flows. The algorithm uses an ILU preconditioned GMRES method to solve the Euler equations on unstructured meshes. Higher-order solutions of up to fourth-order accuracy were obtained. Results show the third-order solution was 1.3-1.5 times more expensive than second-order, while fourth-order was 3.5-5 times more expensive, demonstrating the efficiency of the higher-order approach. Test cases included supersonic and transonic flows, with results agreeing well with structured solvers.
Robust adaptive integral backstepping control and its implementation onShubhobrata Rudra
The document presents a robust adaptive integral backstepping control scheme for motion control systems. It describes the state model of the system and control objective of tracking a reference signal. An integral backstepping control design is developed using error variables and a control Lyapunov function. An adaptation scheme estimates parameter variations using a parameter update law. To improve robustness, a continuous switching function is used to prevent abnormal variation of the adaptation rates. Simulation results show the proposed robust adaptive controller has better tracking performance and reduces parameter estimation error compared to a standard adaptive controller.
The document discusses basic concepts related to electrical power systems including:
1) Definitions of average power, RMS value, power factor, and reactive power for sinusoidal voltage and current signals in single-phase and three-phase systems.
2) Fourier series representation of periodic signals and definition of total harmonic distortion.
3) Concepts of average power, apparent power, and power factor under nonsinusoidal waveforms.
4) Brief overview of the roles of transformers and inductors in power electronics systems and how airgap influences transformer design.
The document summarizes key concepts from chapters 6-14 of a finance textbook on risk and return, time value of money, bonds, stock and their valuation, cost of capital, capital budgeting, and cash flow estimation. It defines terms like expected rate of return, risk measures like standard deviation and beta, bond and stock valuation models, weighted average cost of capital, net present value, internal rate of return, modified internal rate of return, and cash flow terms like operating cash flow, free cash flow, EBIT, and more. Formulas and calculator instructions are provided for computing many of these concepts.
This document summarizes key concepts from chapters 6-13 of a finance textbook on risk and return, bonds, stocks, and capital budgeting. It defines rate of return, expected rate of return, risk/standard deviation, beta coefficient, correlation, security market line, time value of money, yield to maturity, dividend discount model for stocks, weighted average cost of capital (WACC), net present value (NPV), internal rate of return (IRR), and modified IRR (MIRR). Formulas are provided for calculating these concepts.
The document summarizes key concepts from chapters 6-14 of a finance textbook on risk and return, time value of money, bonds, stock and their valuation, cost of capital, capital budgeting, and cash flow estimation. It defines terms like expected rate of return, risk measures like standard deviation and beta, bond and stock valuation models, weighted average cost of capital, net present value, internal rate of return, modified internal rate of return, and cash flow terms like operating cash flow, free cash flow, EBIT, and more. Formulas and calculator instructions are provided for computing many of these concepts.
The document summarizes key concepts from chapters 6-14 of a finance textbook on risk and return, time value of money, bonds, stock and their valuation, cost of capital, capital budgeting, and cash flow estimation. It defines terms like expected rate of return, risk measures like standard deviation and beta, bond and stock valuation models, weighted average cost of capital (WACC), net present value (NPV), internal rate of return (IRR), modified IRR, free cash flow, and operating cash flow. Formulas for concepts like time value of money, yield to maturity, dividend discount model, security market line, and cost of debt are also presented.
The document discusses the cost of capital and components used to calculate the weighted average cost of capital (WACC). It covers sources of long-term capital firms use, after-tax costs of different components, and whether the analysis should focus on historical or current marginal costs. The key points are:
1) Firms use long-term debt, preferred stock, common stock, retained earnings, and new common stock as sources of long-term capital.
2) WACC is calculated using the costs of each capital component weighted by the firm's target capital structure.
3) The analysis should focus on current marginal costs, like today's costs, for decisions involving raising new capital.
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Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
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Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
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This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
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Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Finance Formula
1. BA 640 Formula Chapter 6 Risk and Return
1) Rate of return = Amount received - Amount invested
Amount invested
n
k = ∑ k i Pi
ˆ
2) Expected rate of return Pi = Probability , ki = Rate of return
i =1
Calculator 1) Selecting Mode LR : MODE 5
2) Clear Data : CST EXE AC
3) Insert return before : -22 ALFHA Nj 0.1 MAR …… SHIFT 1 EXE
; DT x
∑ (k )P
n 2
= −k
ˆ
σ = Variance = σ
2
3) Risk or Standard deviation i i
i =1
Calculator 1) Insert return before : -22 ALFHA Nj 0.1 MAR …… SHIFT 2 EXE
; DT xσ n
CV = Risk / Return = σ/x
4) Coefficient of variation
5) Beta coefficient ( β ) Calculator insert Mkt. before : 25.7 ALFHA CFj 40 MAR …… SHIFT 8 EXE
β
, DT
6) Correlation ( r ) Calculator insert Mkt. before : 25.7 ALFHA CFj 40 MAR …… SHIFT 9 EXE
( -1 < r < 1 ) , DT r
∑ (k )P
n 2
n
= − kp
ˆ
∑ wi kˆi σp
ˆ
7) Expected return on a portfolio k p = , Risk on a portfolio pi i
i =1
i =1
8) Security Market Line (SML) : ki = kRF + (RPM)bi
Required return = Risk-free return + Premium for risk
Required return on stock i = Risk-free rate of return + (Market risk premium)(Stock i ‘ s beta)
Chapter 9 Bonds and Their Valuation
CF
CF CF
+ + .....+ n
1 2
(1+ k) (1+ k) (1+ k)n
1) PV = Calculator 1) Selecting Mode FIN : MODE 4
1 2
SHIFT AC EXE AC
2) Clear Data :
3) PV = 10 n 10 i% 100 PMT 1000 FV COMP PV EXE
2) Yield to maturity (YTM) or kd = 10 n -887 PV 90 PMT 1000 FV COMP i% EXE
Chapter 10 Stock and Their Valuation
D1 D2 D3 D∞
P=
+ + +. . . +
ˆ
(1+ ks )1 (1+ ks )2 (1+ ks )3 (1+ ks )∞
1) Stock Value = PV of Dividends 0
ˆ D (1 + g ) = D1
P0 = 0 D1
3) k s = +g
ˆ
ks − g ks − g
2) If g is constant, then
P0
= Actual dividend yield + Actual capital gains yield
3) k s
D D ps
V ps = k ps =
ps
or
4)
V ps
k ps
kS = kRF + (kM - kRF) bFirm
5) Use the SML to calculate kS ;
1) After-tax component cost of debt = kd ( 1-T )
Chapter 11 The cost of Capital
D
=
ps
2) The cost of preferred stock k
;
ps
Pn
2. WACC = wdkd (1-T) + wpskps + wceks
3) Weighted Average Cost of Capital (WACC) ;
ˆ
ks = k s = kRF + RP = D1 / P0 + expected g
4)
5) ks = Bond yield + Risk premium
6) g = (Retention rate)(ROE) = (1.0 – Payout rate)(ROE) = b(ROE)
Chapter 13 The Basics of Capital Budgeting : Evaluating Cash Flows
1) Payback period = Year before full recovery + Unrecovered cost at start of year
Cash flow during year
2) Net Present Value (NPV) : Sum of PVs of inflows and Outflows = PV inflow – PV outflow
n n
CFt
CF t
∑ NPV = ∑
= − CF0
NPV
(1 + k )t (1 + k )t
or
t=0 t =1
Calculator -100 CFj 10 CFj 60 CFj 80 10 i% COMP NPV EXE
n
CF t
∑ (1 +
IRR = =0
)t
3) Internal Rate of Return (IRR) : NPV =0 ;
IRR
t=0
Calculator -100 CFj 10 CFj 60 CFj 80 10 i% COMP IRR EXE
TV
4) Modify Internal rate of return (MIRR) : PV costs = PV terminal value : PV costs =
(1 + MIRR ) n
Chapter 8 Time Value of Money
FVn = PV (1 + i )
n
⎛1⎞
n FV
⎜ ⎟
n
or PV = = FV
1)
(1 + i )n n
⎝1+ i⎠
mn
⎛ ⎞
mn
⎛ ⎞
i i
= PV ⎜ 1 + Nom ⎟ = ⎜ 1 + Nom ⎟ − 1 .0
FV or Effective annual rate
2) n
⎝ m⎠
⎝ m⎠
Chapter 14 Cash Flow Estimate and Risk Analysis
1) Net Proceeds from sales (NP) = MV + Tax ; MV = Market value
= MV + Tax rate ( MV-BV) ; BV = Book value
2) Net operating working capital (NOWC) = All current assets that _ All current liabilities that
do not pay interest do not pay interest
= Operating current assets – operating current liabilities
3) Operating capital = (Net operating working capital) – (Net plant and equipment)
4) NOPAT = Net operating profit after taxes = EBIT(1-Tax rate)
5) Operating cash flow (OCF) = NOPAT + Depreciation = EBIT(1-Tax) + Depreciation
= (Sales – CGS – Operating Expense – depreciation)(1-Tax) + Depreciation
= (Sales – CGS – Operating Expense)(1-Tax) + (Depreciation x Tax)
6) Free cash flow (FCF) = Operating cash flow - Gross investment in operating capital
= NOPAT – Net investment in operating capital
7) Free cash flow (FCF) = EBIT(1-Tax) + Depreciation + ∆NWC + ∆CAPEX
8) EBIT = Sales – CGS – Operating Expense – depreciation
= Sales – Variable Cost – Fixed Cost