Formulas Flashcards
1
Q
What is the formula for Future Value?
A
PV x (1+IR)^n
PV = Present Value IR = Interest Rate n = Years
2
Q
How do you calculate equity?
A
Share Capital + Retained Earnings
3
Q
How do you calculate Capital Employed?
A
Share Capital + Long-Term Borrowing
4
Q
How do you calculate depreciation using the straight-line method?
A
(Cost of Asset - Salvage Value) / Useful Life of Asset [years]
5
Q
How do you calculate Gross Profit?
A
Revenue - Cost of Goods Sold
6
Q
How do you calculate Present Value?
A
FV / (1 + Discount Rate)^n
