**Finance Formulas** / April 22, 2018 / Heaven Estes

read moreIt is important to keep the rate per period and number of periods consistent with one another in the formula. If the loan payments are made monthly, then the rate...

**Finance Formulas** / August 5, 2018 / Aniyah Booth

read moreStockholders' equity, also referred to as shareholders' equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm's...

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

read moreIn other words, the breakeven point is equal to the total fixed costs divided by the difference between the unit price and variable costs. Note that in this formula, fixed...

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

read moreContribution margin is the sales price minus total variable costs, where variable costs might include materials, labor or overhead. For example, Company XYZ sells a product for $100 each. The...

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

read moreInstead of calculating interest on a finite number of periods, such as yearly or monthly, continuous compounding calculates interest assuming constant compounding over an infinite number of periods. Even with...

__Finance Formulas__ / August 5, 2018 / Alia Marquez

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 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__ / August 5, 2018 / Briana Leonard

read moreBond valuation is a technique for determining the theoretical fair value of a particular bond. Bond valuation includes calculating the present value of the bond's future interest payments, also known...

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