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BEC- Accounting > BEC Formulas (STUDY) > Flashcards

BEC Formulas (STUDY) Flashcards

1
Q

Effective Interest Rate Equation

A

Interest Paid per Period / Net Proceeds of Loan

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2
Q

Annual Percentage Rate (APR)

A

Effective Interest Rate x Number of Periods

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3
Q

Effective Annual Percentage Rate (EAR)

A

[1 + (i / p)]^p -1

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4
Q

Value of a Firm

A

PV of FCFs / WACC

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5
Q

WACC

A

(CE % x CE Cost) + (PE % x PE Cost) + [Debt (1 - Tax)]

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6
Q

Weighted-Avg Interest Rate (Debt WACC)

A

Interest Payments / Debt Outstanding

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7
Q

Cost of Preferred Stock (PE WACC)

A

Dividends Paid / Net Proceeds of Preferred Stock

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8
Q

Cost of Common Stock (RE) - 3 Methods for WACC

  1. CAPM
  2. DCF
  3. BYRP
A
  1. RF Rate + (Beta x (Mkt Return - RF Rate))
  2. (D1) / (P0) + G
  3. Pretax Cost of LT Debt x (Mkt Return - RF Rate)
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9
Q

DCF Method - Finding D1 if not given

A

D0 x (1 + G)

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10
Q

DCF Method - Finding G if not given

A

ROE x *(1 - Payout)

*Retention

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11
Q

Payout Rate

A

Dividends per CS / Earnings per CS

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12
Q

ROX

X= Assets, Equity

A

NI / Average Total X

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13
Q

ROI (2 Methods)

A

Profit Margin x Investment Turnover
or
NI / Avg Invested Capital

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14
Q

ROS (Sales)

A

EBIT / Net Sales

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15
Q

Operating Leverage

A

FC / VC

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16
Q

Financial Leverage (2 methods)

A

% Change EBT or EBS / % Change EBIT
or
Assets / Equity

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17
Q

Equity Multiplier

A

TA / TE

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18
Q

Times Interest Earned Ratio

A

EBIT / Int Expense

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19
Q

Quick Ratio

A

CA - Inventory / CL

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20
Q

Cash Conversion Cycle

A

Days in Inventory + Days Sales in AR - Days of Payables Outstanding

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21
Q

Days in X Ratio

X= Inventory, Sales, Payables

A

Ending X / Avg *COGS per Day

*Would be Sales for “Sales in AR”

22
Q

X Turnover Ratio

1) AR/WC
2) AP/Inventory

A 
AR/WC = (Net) Sales / Avg X
AP/Inv= COGS / Avg X
23
Q

Profitability Index

A

PVFCF’s / Cost of Initial Investment

24
Q

APR of Quick Payment Discount

A

[360 / (Pay Period - Discount Period)] x [Discount / (100 - Discount)]

WARNING: NO DECIMALS

25
Q

Reorder Point

A

Safety Stock + (Lead Time x Sales During Lead Time)

26
Q

EOQ Equation

A

“2SOC!”

SqRoot [(2 x Annual Sales per Unit x Cost per Purchase Order) / Annual Carrying Cost per Unit]

27
Q

Price to X Ratio: Leading Normal vs PEG

A

Normal: P0 / XPS1
PEG: (P0 / XPS1) / G

28
Q

Price to X Ratio: Trailing Normal vs PEG

A

Normal: P0 / XPS0
PEG: (P0 / XPS0) / G

29
Q

Profit Margin Ratio

A

NI / Sales (Net)

30
Q

DuPoint ROE

A

Profit Margin x Asset Turnover x Financial Leverage

31
Q

Economic Value Added (EVA)

A

[EBIT x (1 - T)] - (Investment x WACC)

32
Q

EBIT Margin

A

EBIT / Sales

33
Q

Extended DuPoint ROE

A

“FATIE”

Tax Burden x Int Burden x EBIT Margin x Asset Turn x Financial Leverage

34
Q

Tax Burden

A

NI / Pretax Income

35
Q

Interest Burden

A

Pretax Income / EBIT

36
Q

Prime Costs

A

DM + DL

37
Q

Conversion Costs

A

DL + O/H Applied

38
Q

Applied O/H: Traditional

A

(Estimated Total O/H / Single Estimated Cost Driver) x Actual Cost Driver

39
Q

Product Cost/Manufacturing Costs

A

DL + DL + O/H Applied

40
Q

COGM

A

Beg WIP + Manufacturing Costs - Ending WIP

41
Q

COGS

A

Beg FG + COGM = COGA - End FG

42
Q

Total Factor Productivity (TFP)

A

Output / Total Costs

43
Q

Partial Productivity Ratio (PPR)

A

Output / Qty of Material or Labor

44
Q

1) Equivalent Units: WA

2) Cost per EU: WA

A

1) Units Completed + (End WIP x % Complete) = EU

2) (Beg + Current Cost) / EU = Cost per EU

45
Q

1) Equivalent Units: FIFO

2) Cost per EU: FIFO

A

1) [Beg WIP x (1 - % Complete) + (Units Completed - Beg WIP) + (End WIP x % Complete)] = EU
2) Current Cost / Cost per EU

46
Q

Contribution Margin

A

Sales - VC

47
Q

Operating Income

A

Contribution Margin - FC

48
Q

Variable Analysis

A

SAD PURE DADS
(S)td - (A)ct = (D)ifference

(R)ate = D x A
(U)sage = D x S
(R)ate = D x A
(E)fficiency = D x S
49
Q

High-Low Method

A

1) Change in TC (HvL) / Change in Activity (HvL) = VC

2) Solve for FC using highest or lowest cost

50
Q

Absorption vs Contribution to solve for NI

A

Absorption = GAAP -> Rev - COGS = Gross Margin - OP Expenses = NI

Contribution = Not-GAAP -> Rev - VC = Contribution Margin - FC = NI

51
Q

Elasticity of Demand

A

% Change in Demand / % Change in Price

BEC- Accounting (4 decks)

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