Finance Formulas / July 16, 2018 / Cecelia Weiss
Knowing the Cross Price Elasticity of Demand of its own and other related products allows a firm to map out the market. The firm can then calculate how many competitors it has, and how closely related they are. It also allows a firm to measure how important its complementary products are to its own products.
A company's yield divided by it amount to of usual excellent shares. If a company earning $2 million in one year had 2 million common shares of stock outstanding, its EPS would be $1 per share. In calculating EPS, the company often uses a weighted average of shares outstanding over the reporting term. The one-year (historical or trailing) EPS growth rate is calculated as the percentage change in earnings per share. The prospective EPS growth rate is calculated as the percentage change in this year's earnings and the consensus forecast earnings for next year.
An immediate payment annuity is an annuity contract that is purchased with a single payment and pays a guaranteed income that starts almost immediately. Also called a "single-premium immediate annuity (SPIA)," "income annuity" or simply an "immediate annuity," an immediate payment annuity generally starts payment one month after a premium is paid and continues for as long as the annuitant (buyer) is alive or for a specific period of time.
A debt ratio of .5 is often considered to be less risky. This means that the company has twice as many assets as liabilities. Or said a different way, this company’s liabilities are only 50 percent of its total assets. Essentially, only its creditors own half of the company’s assets and the shareholders own the remainder of the assets.
In Case You Missed It