**Finance Formulas** / August 2, 2018 / Rory Wise

read moreConsider the following example to illustrate the concept. Assume hypothetical company BigBox has operating income or earnings before interest and taxes (EBIT) of $100 million in Year 1, with interest...

**Finance Formulas** / August 5, 2018 / Alia Marquez

read moreThe main thing to understand in managerial accounting is the difference between revenues and profits. Not all revenues result in profits for the company. Many products cost more to make...

**Finance Formulas** / August 5, 2018 / Avalynn Orr

read moreThe accounting equation, also known as the balance sheet equation, is written as Assets = Liabilities + Equity and underpins the balance sheet's foundation. The accounting equation is the foundation...

**Finance Formulas** / August 5, 2018 / Briana Leonard

read moreA coupon bond, also referred to as a bearer bond, is a debt obligation with coupons attached that represent semi-annual interest payments. With coupon bonds, there are no records of...

*Finance Formulas* / August 5, 2018 / Kenley Hopper

read moreBond 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...

__Finance Formulas__ / August 4, 2018 / Alia Marquez

read moreThe accounting equation, also known as the balance sheet equation, is written as Assets = Liabilities + Equity and underpins the balance sheet's foundation. The accounting equation is the foundation...

*Finance Formulas* / August 5, 2018 / Alia Marquez

read moreFor example, an investor starts her own business with $100,000 and earns $120,000 in profits during the first year. Her accounting profit is $20,000. But that same year, she could...

__Finance Formulas__ / August 4, 2018 / Alia Marquez

read moreContribution margin is used by management when making pricing decisions. This is especially true in special pricing or special order situations where fixed costs are sunk costs and should not...

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