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BEC 1st Time > Formulas > Flashcards

Formulas Flashcards

1
Q

Economic Value Added

formula

A 
Capital
* wacc
= normal return
- net income after tax
= EVA

This number is absolute value

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2
Q

Average collection period

formula

A

365/AR turnover ratio

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3
Q

Residual income

Formula

A

Net income above the minimum desired rate of return on invested capital

Min. Desired rate of return =
desired rate of return x invested capital

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BEC 1st Time (5 decks)

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