Formulas

Question 1

Price Elasticity of Demand

Answer 1

%Change in Qd/% chage in P

Question 2

Income Elasticity of Demand

Answer 2

%change in Q/% change in income

Question 3

Elasticity of Supply

Answer 3

%change in qs/%change in p

Question 4

GDP Gap

Answer 4

Potential-Real

Question 5

GDP Calculation Income

Answer 5

I
P
I
R
A
T
E
D

Question 6

Net Domestic Product

Answer 6

GDP-Dep

Question 7

GDP Calculation Expenditure

Answer 7

Govt
Investment
Consumption
Exports, net

Question 8

Dispoable Income

Answer 8

Personal Income-taxes

Question 9

Coefficient Variation calc

Answer 9

Std dev/expected return

Question 10

Effective Annual Rate

Answer 10

(1+rate/compounding freq)^freq-1

Question 11

Payback

Answer 11

Inv/Annual CF

Question 12

Annual CF

Answer 12

Annual CF
-Dep
-Taxes
\+dep
=after tax cf

Question 13

Rate or return

Answer 13

NI/Inv

Question 14

DCC

Answer 14

Inv Conv+Rec conv-pay deferral

Question 15

Inv Conv

Answer 15

Avg inv/cogs per day

Question 16

Rec conv

Answer 16

Avg rec/credit sales per day

Question 17

Pay deferral

Answer 17

Avr pay/cogs or purch per day

Question 18

EOQ

Answer 18

sqr(2od/c)

o=cost per order
d=demand
c=carrying cost

Question 19

Reorder Point

Answer 19

(# unit sold per day*purchase lead time)+saftey stock

Question 20

Nominal Rate for discount

Answer 20

Discount%/1-discount%*365/pmnt period-discount period

Question 21

DOL

Answer 21

%change in op income/%change in unit vol

Question 22

Cost of Debt after tax

Answer 22

Int rate *(1-tax)

Question 23

Cost of Debt before tax

Answer 23

Int Pmy/Debt price-flotation cost

Question 24

Cost of PRef Equity

Answer 24

Pref div/Perfered stock price

Question 25

CAPM Model

Answer 25

r+(m-r)*b

r-risk free
m=market
b=beta

Question 26

Div Yield plus growth

Answer 26

D1+expexted g/P

p=current stock price
d1=next expected div
g=growth

Question 27

Cost of new CS

Answer 27

D1/P-f

d1=next expected div
p=current stock price
f=flotation cost per share

Question 28

DM calculation

Answer 28

Beg bal
\+COGP
COGAFS
-DM used
End DM

Question 29

COGP

Answer 29

Gross Purch
-Discounts
-Returns
Net Purch
\+Freight in
COGP

Question 30

WIP

Answer 30

Beg WIP
D Used (DL, DM, OH)
-COGM
End WIP

Question 31

FG

Answer 31

Beg FG
+COGGM
-COGS
End DG

Question 32

CM

Answer 32

SP-VC

Question 33

CM Ratio

Answer 33

CM/Sale

Question 34

BEP Units

Answer 34

TFC/CM

Question 35

BEP $

Answer 35

TFC/CM ratio

Question 36

Margin of Safety

Answer 36

Sales-BEP