# Knowingpains Financial FormulasKnowingpains Financial Formulas

## Book Value FormulaBook Value Formula

Finance Formulas / August 5, 2018 / Briana Leonard

The higher the debt ratio, the more leveraged a company is, implying greater financial risk. At the same time, leverage is an important tool that companies use to grow, and...

## Gdp Per Capita FormulaGdp Per Capita Formula

Finance Formulas / August 5, 2018 / Luz Tyson

Bond valuation, in effect, is calculating the present value of a bondâ€™s expected future coupon payments. The theoretical fair value of a bond is calculated by discounting the present value...

## Amortization Payment FormulaAmortization Payment Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

Down payment (or downpayment, also called a deposit in British English), is a payment used in the context of the purchase of expensive items such as a car and a...

## Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

A dividend is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding. For the joint-stock company, paying dividends is not an expense;...

## Solvency Ratio FormulaSolvency Ratio Formula

Finance Formulas / August 4, 2018 / Alia Marquez

Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analyses use future free cash flow projections and discounts them, using a...

## Cpc FormulaCpc Formula

Finance Formulas / August 4, 2018 / Aniyah Booth

Total debt service refers to current debt obligations, meaning any interest, principal, sinking-fund and lease payments that are due in the coming year. On a balance sheet, this will include...

### Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

Otherwise, an annuity that changes the payment andor rate would need to be adjusted for each change. An annuity that has its first payment due at the beginning would use...

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

Finance Formulas / August 5, 2018 / Briana Leonard

Generally speaking, the higher the asset turnover ratio, the better the company is performing, since higher ratios imply that the company is generating more revenue per dollar of assets. The...

##### Coupon Rate FormulaCoupon Rate Formula

Finance Formulas / August 4, 2018 / Alia Marquez

The cost of equity can be a bit tricky to calculate as share capital carries no "explicit" cost. Unlike debt, which the company must pay in the form of predetermined...

###### Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

Economic profit or loss is most useful when comparing multiple outcomes and making a decision between these outcomes. This is especially true for decisions with multiple variables that affect and...