**Finance Formulas** / May 5, 2018 / Chanel Cleveland

read moreBreak-even point analysis is a measurement system that calculates the margin of safety by comparing the amount of revenues or units that must be sold to cover fixed and variable...

**Finance Formulas** / April 26, 2018 / Alyvia French

read moreEconomic profit is a measurement of opportunity cost. Opportunity cost is the value of the trade-off when a decision is made. For example, an individual may consider returning to school...

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

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 5, 2018 / Alia Marquez

read moreThe Debt Service Coverage Ratio, usually abbreviated as DSCR or just DCR, is an important concept in real estate finance and commercial lending. It’s critical when underwriting commercial real estate...

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

read moreDiluted EPS is a calculation used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Convertible securities are all outstanding convertible preferred...

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

read moreThe higher the DFL, the more volatile earnings per share (EPS) will be. Since interest is a fixed expense, leverage magnifies returns and EPS, which is good when operating income...

__Finance Formulas__ / August 5, 2018 / Kenley Hopper

read moreCommon shareholders expect to obtain a certain return on their equity investment in a company. The equity holders' required rate of return is a cost from the company's perspective because...

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

read moreThe 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...

__Finance Formulas__ / August 5, 2018 / Kenley Hopper

read moreThe asset turnover ratio is an efficiency ratio that measures a company’s ability to generate sales from its assets by comparing net sales with average total assets. In other words,...

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