Chapter 2 Flashcards
1
Q
Earnings per share in
A
Net income - preferred dividends / average common share outstanding
DIVIDE BY 2 for when they’re more than one share outstanding
2
Q
Current ratio
A
Current assets / current liabilities
3
Q
Working capital
A
Current assets - current liabilities
4
Q
Debt to asset ratio
A
Total liabilities / total assets
5
Q
Free cash flow
A
Net cash provided by operating activities - capital expenditures - cash dividends
Capital expenditures (Plant, Property, Equipment)
