Exam 1 Formulas-1 - Summary  Business Finance PDF

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Summary of formulas needed for exam 1 ...

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Finance Formulas (1 + nominal risk-free rate) = (1 + real rate) (1 + rate of inflation) current ratio = current assets/current liabilities quick or acid test ratio = (current assets - inventories)/current liabilities days in receivables = accounts receivable/daily credit sales accounts receivable turnover = credit sales/accounts receivable days in inventory = inventory/daily cost of goods sold inventory turnover = cost of goods sold/inventory operating return on assets = operating profit/total assets operating profit margin = operating profit/sales total asset turnover = sales/total assets fixed asset turnover = sales/fixed assets debt ratio = total debt/total assets times interest earned = operating income/interest return on equity = net income/common equity price/earnings ratio = market price per share/earnings per share price/book ratio = market price per share/equity book value per share EVA = (operating return on assets - cost of capital) x (total assets)

income corporate tax rate $0 - 50,000 15% 50,001-75,000 25% 75,001-10,000,000 34% over $10,000,000 35% additional surtax: from $100,000 - $335,000 5% surtax from $15,000,000 - 18,333,333 3% surtax...