**Finance Formulas** / June 25, 2018 / Rory Wise

read moreYou can use the bond price formula to determine the value of a bond. While it involves some number crunching, it’s a fairly straightforward process because future cash flows to...

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

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** / June 23, 2018 / Heaven Estes

read moreDiscounted cash flow models are powerful, but they do have shortcomings. DCF is merely a mechanical valuation tool, which makes it subject to the axiom "garbage in, garbage out." Small...

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

read moreCompanies record accounts receivable as assets on their balance sheets since there is a legal obligation for the customer to pay the debt. Furthermore, accounts receivable are current assets, meaning...

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

read moreA lower debt ratio usually implies a more stable business with the potential of longevity because a company with lower ratio also has lower overall debt. Each industry has its...

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

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 / Kenley Hopper

read moreAn accounting ratio compares two line items in a company’s financial statements, namely made up of its income statement, balance sheet and cash flow statement. These ratios can be used...

__Finance Formulas__ / August 5, 2018 / Aniyah Booth

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 moreEarnings per share is the portion of a company's profit that is allocated to each outstanding share of its common stock. It is calculated by taking the difference between a...

__Finance Formulas__ / August 5, 2018 / Kenley Hopper

read moreThe statement of cash flows or the cash flow statement, as it's commonly referred to, is a financial statement that summarizes the amount of cash and cash equivalents entering and...

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