**Finance Formulas** / January 6, 2018 / Alia Marquez

read moreIn contrast, implicit costs are the opportunity costs of factors of production that a producer already owns. The implicit cost is what the firm must give up in order to...

**Finance Formulas** / January 3, 2018 / Heaven Estes

read moreContribution margin is a cost accounting concept that lets a company determine the profitability of its individual products. The phrase contribution margin can also refer to a per unit measure...

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

read moreThe debt ratio is a financial ratio that measures the extent of a company’s leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed...

**Finance Formulas** / August 4, 2018 / Alia Marquez

read moreWhen the cross elasticity of demand for product A relative to a change in the price of product B is positive, it means that in response to an increase in...

**Finance Formulas** / August 4, 2018 / Alia Marquez

read moreGiven that the debtequity ratio measures a company’s debt relative to the total value of its stock, it is most often used to gauge the extent to which a company...

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

read moreThe PV, or present value, portion of the loan payment formula uses the original loan amount. The original loan amount is essentially the present value of the future payments on...

__Finance Formulas__ / August 5, 2018 / Kenley Hopper

read morePresent value is the discounted sum of future cash flows each future cash flow is multiplied by a carefully selected number less than one, before being added together. The multiplication...

*Finance Formulas* / August 4, 2018 / Aniyah Booth

read moreAn individual starts a business and incurs startup costs of $50,000. During the first year of operation, the business earns a profit of $75,000. If the individual had stayed at...

__Finance Formulas__ / August 5, 2018 / Avalynn Orr

read moreA depreciation rate is the percentage of a long-term investment that you use as an annual tax deductible expense during the period over which you claim it as a tax...

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