**Finance Formulas** / July 15, 2018 / Kenley Hopper

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** / April 22, 2018 / Heaven Estes

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 5, 2018 / Avalynn Orr

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 4, 2018 / Alia Marquez

read moreCross Price Elasticity of Demand (XED) is the responsiveness of demand for one good to the change in the price of another good. It is the ratio of the percentage...

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

read moreThe balance sheet is a complex display of this equation, showing that the total assets of a company are equal to the total of liabilities and shareholder equity, or said...

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

read moreWhat does the debt service coverage ratio mean? A DSCR greater than 1.0 means there is sufficient cash flow to cover debt service. A DSCR below 1.0 indicates there is...

__Finance Formulas__ / August 5, 2018 / Alia Marquez

read moreThe contribution margin is an integral aspect when calculating the break-even point of sales or a target level of sales. The contribution margin determines the portion of each sale that...

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

read moreThe cash ratio is most commonly used as a measure of company's liquidity. The metric calculates a company's ability to pay current liabilities using only cash and cash equivalents on...

__Finance Formulas__ / August 4, 2018 / Aniyah Booth

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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