# Algebra Commerce Lecture Slides Docsity Present Value Perpetuity Formula This Only Preview Implied Growth Rate Annuity Calculator Continuing Compute Cash Flows Growing Chart

Finance Formulas / July 18, 2018 / Luz Tyson

## Labor Efficiency Variance Formula

### Principal Interest Formula

#### Cost Of Goods Manufactured Formula

##### Return On Invested Capital Formula
###### Profit And Loss Formula

The cost of equity is the return a company requires to decide if an investment meets capital return requirements. It is often used as a capital budgeting threshold for required rate of return. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership. The traditional formulas for cost of equity (COE) are the dividend capitalization model and the capital asset pricing model.

Inventory is included as current assets, but this item should be taken with a grain of salt. Different accounting methods can be used to inflate inventory, and in any case it is not nearly as liquid as other current assets. It may not even be as liquid as accounts receivable, which can be sold to third-party collection agencies, albeit at a steep discount.

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