Cost of capital, WACC, EVA, leverage and EBIT–EPS analysis.
Cost of Equity
Estimate shareholders’ required return using CAPM or the Dividend Growth Model.
Cost of Debt
Estimate before-tax and after-tax borrowing cost with user-entered tax assumptions.
WACC
Combine market-value capital weights and component financing costs.
Economic Value Added (EVA)
Compare after-tax operating profit with the cost of invested capital.
Degree of Operating Leverage (DOL)
Measure how a fixed operating cost structure magnifies changes in sales into EBIT sensitivity.
Degree of Financial Leverage (DFL)
Estimate how fixed interest and preferred dividends affect common earnings sensitivity to EBIT.
Degree of Combined Leverage (DCL)
Combine operating cost sensitivity and fixed financing obligations into sales-to-common-earnings sensitivity.
EBIT–EPS Analysis
Compare EPS under two financing plans across a user-selected EBIT range.