**Finance Formulas** / June 23, 2018 / Heaven Estes

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 moreTotal costs are made up of fixed costs, those costs that are required for production but do not change based on output, and variable costs, those costs that increase or...

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

read moreThe higher the debt ratio, the more leveraged a company is, implying greater financial risk. At the same time, leverage is an important tool that companies use to grow, and...

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

read moreThe loan payment formula is used to calculate the payments on a loan. The formula used to calculate loan payments is exactly the same as the formula used to calculate...

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

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 moreWhen the cross elasticity of demand for product A relative to a change in the price of product B is positive, it means that in response to an increase in...

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

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 / Aniyah Booth

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...

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