**Finance Formulas** / June 2, 2018 / Alyvia French

read moreThe cost of equity can be a bit tricky to calculate as share capital carries no "explicit" cost. Unlike debt, which the company must pay in the form of predetermined...

**Finance Formulas** / June 16, 2018 / Briana Leonard

read moreCompound interest is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one.The total initial amount of the...

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

read moreAccounting profit is the difference between total monetary revenue and total monetary costs, and is computed by using generally accepted accounting principles (GAAP). Put another way, accounting profit is the...

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

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...

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

read moreContribution margin is directly related to the contribution margin ratio. The contribution margin ratio can be calculated on a per-unit basis or an aggregate basis. The per-unit basis divides the...

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

read moreTo examine the relationship between interest rates and bond prices, imagine an investor buys a bond from ABC Corporation with a 4% coupon rate and a $1,000 face value. Another...

__Finance Formulas__ / August 5, 2018 / Briana Leonard

read moreThe break-even point (BEP) in economics, businessâ€”and specifically cost accountingâ€”is the point at which total cost and total revenue are equal. There is no net loss or gain, and one...

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

read moreWhen investors buy bonds, they essentially lend bond issuers money. In return, bond issuers agree to pay investors interest on bonds throughout their lifetime and to repay the face value...

__Finance Formulas__ / August 5, 2018 / Avalynn Orr

read moreBond yield is the amount of return an investor realizes on a bond. Several types of bond yields exist, including nominal yield which is the interest paid divided by the...

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