**Finance Formulas** / July 22, 2018 / Iliana Williamson

read moreIn contrast, implicit costs are the opportunity costs of factors of production that a producer already owns. The implicit cost is what the firm must give up in order to...

**Finance Formulas** / July 25, 2018 / Cecelia Weiss

read moreThe depreciable value of your fixed asset is based on the amount you pay for it minus the amount you'd earn selling it for scrap at the end of the...

**Finance Formulas** / July 22, 2018 / Aniyah Booth

read moreContinuous compounding is the mathematical limit that compound interest can reach if it's calculated and reinvested into an account's balance over a theoretically infinite number of periods. While this is...

**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 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 4, 2018 / Alia Marquez

read moreAsset turnover ratio is typically calculated over an annual basis using either the fiscal or calendar year. The total assets number used in the denominator can be calculated by taking...

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

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 4, 2018 / Alia Marquez

read moreA depreciation rate is the percentage of a long-term investment that you use as an annual tax deductible expense during the period over which you claim it as a tax...

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

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 moreEconomic profits may be positive, zero, or negative. If economic profit is positive, other firms have an incentive to enter the market. If profit is zero, other firms have no...

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