# Knowingpains Financial FormulasKnowingpains Financial Formulas

## Average Cost Method FormulaAverage Cost Method Formula

Finance Formulas / July 31, 2018 / Cecelia Weiss

Total debt to total assets is a measure of the company's assets that are financed by debt, rather than equity. This leverage ratio shows how a company has grown and...

## Markup Price FormulaMarkup Price Formula

Finance Formulas / July 31, 2018 / Briana Leonard

You can use the bond price formula to determine the value of a bond. While it involves some number crunching, it’s a fairly straightforward process because future cash flows to...

## Effective Yield FormulaEffective Yield Formula

Finance Formulas / July 31, 2018 / Luz Tyson

Immediate payment annuities are a valuable retirement planning tool in that they provide a reliable and inexhaustible income stream. In effect, they function as a risk management tool that works...

## Coupon Rate FormulaCoupon Rate Formula

Finance Formulas / August 4, 2018 / Alia Marquez

It is important to keep the rate per period and number of periods consistent with one another in the formula. If the loan payments are made monthly, then the rate...

## Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

The term "profit" may bring images of money to mind, but to economists, profit encompasses more than just cash. In general, profit is the difference between costs and revenue, but...

## Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

It is important to keep the rate per period and number of periods consistent with one another in the formula. If the loan payments are made monthly, then the rate...

### Solvency Ratio FormulaSolvency Ratio Formula

Finance Formulas / August 4, 2018 / Alia Marquez

The purpose of the break-even analysis formula is to calculate the amount of sales that equates revenues to expenses and the amount of excess revenues, also known as profits, after...

#### Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

Contribution margin is the sales price minus total variable costs, where variable costs might include materials, labor or overhead. For example, Company XYZ sells a product for \$100 each. The...

##### Contribution Margin Per Unit FormulaContribution Margin Per Unit Formula

Finance Formulas / August 5, 2018 / Briana Leonard

The dividend growth rate is necessary for using the dividend discount model, which is a security pricing model that assumes a stock's price is determined by the estimated future dividends,...

###### Cpc FormulaCpc Formula

Finance Formulas / August 4, 2018 / Aniyah Booth

An accounting ratio compares two line items in a company’s financial statements, namely made up of its income statement, balance sheet and cash flow statement. These ratios can be used...

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