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Accounting > Formulas > Flashcards

Formulas Flashcards

1
Q

Return on Equity

A

Profit ÷ average shareholder equity(which is begining + end divide by 2)

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2
Q

Earnings per share (in dollars(

A

(Profit-dividends) ÷ weighted average

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3
Q

Weighted averages

A

Number of shares issued × the amount of time left during the year

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4
Q

Price earning ratio

A

Market price ÷ earnings per share

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5
Q

Payout ratio

A

Cash dividends ÷ profit

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Accounting (2 decks)

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