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Restudy - BEC > Formulas & Vocabulary > Flashcards

Formulas & Vocabulary Flashcards

1
Q

Effective Interest rate

A

interest 1 + additional interest/ (net proceeds)

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2
Q

Simple Interest

A

(P(ii)(n))

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3
Q

Effective APR

A

1+ (ii/n)^n) - 1

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4
Q

Compound interest

A

Po (1+ii)^n

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5
Q

Required RoR

A

Maturity Risk
Purchase power or inflations
liquidity risk premium
default risk premium

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6
Q

B/E Point Call option - Buy

A

x + cost

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7
Q

B/E Point Put option - Sell

A

x - cost

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8
Q

cost of debt after tax

A

interest rate * (1-t)

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9
Q

W-avg cost of debt

A

(Cost of debt after tax * % of debt)

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10
Q

Cost of preferred stock

A

P.S / (Net proceeds)

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11
Q

Weighted avg cost of capital

A

Cost debt * % debt + cost of ps * % ps + cost of RE * re

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12
Q

1/3 Cost of RE - CAPM

A

RFR+ B*(Market risk - rfr)

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13
Q

2/3 Discounted CF

A

Dividend per shared @ end of year / ( Current MV or price)

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14
Q

3/3 Bond Yield + Risk Premium

A

Pretax cost of LT debt + Market risk premium

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15
Q

Growth Rate

A

ROA* retention/ (1- roa-retnetion)

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16
Q

Return on sales

A

EBIT/ avg sales

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17
Q

Return on investment

A

NI/ avg investment

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18
Q

Return on asset

A

Ni/ avg assets

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19
Q

Return on Equity

A

NI/ Avg equity or

(NI/sales) * ( sales/ assets) * (asset/equity) *

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20
Q

Operating leverage

A

Fixed cost/ Variable cost

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21
Q

Financial leverage

A

Asset/equity

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22
Q

Total debt ratio

A

Total liabl/total assets

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23
Q

Debt to equity

A

Total liab/total equity

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24
Q

Equity Multiplier

A

Total Asset/total equity

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25
Q

Times interest Earned Ratio

A

EBIT/I.E

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26
Q

Working capital

A

CA-CL

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27
Q

Current Ratio

A

CA/CL

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28
Q

Quick ratio

A

CA-Inv-prepaid/(CL)

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29
Q

Cash conversion cycle

A

days in inventory + days in AR - days in AP

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30
Q

Inventory TO

A

cogs/avg inventory

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31
Q

days in inventory

A

inventory/(cogs/365)

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32
Q

AR turnover

A

Sales/Avg AR

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33
Q

Day in sales of AR

A

AR/ Sales/365

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34
Q

AP turnover

35
Q

Days of payable o/s

A

Ending AP/COGS/(365)

36
Q

Working Capital

A

Sales/ avg capital

37
Q

Reorder point

A

[Safety stock+leadtime *sales lead)

38
Q

Economic order quantity

A

2*annual sales in unit/ annual carrying cost

39
Q

PV of annuity

A

Amount Annuity * 1-pv/r

40
Q

Price Earning Ratio

A

Stock price or value today / EPS in 1 year

41
Q

Price to sale ratio

A

Stock price or value today/ expected sales in 1 year

42
Q

Price to sales ratio to book

A

stock price or value today/ book value of common equity

43
Q

Price to CF ratio

A

stock price or value today/ CF in 1 year

44
Q

Cost of Maufacturing

45
Q

Discounted payback period

A

initial investment - (net cf * pv factor)

46
Q

pre tax cf

A

Cash inflow - depreciation - tax

47
Q

After tax cf

A

annual net CF (1-T)

48
Q

NPV Method

A

Annual net cf (1-t) + depreciation benefit * NPV - Investment

49
Q

Payback period

A

Cost/ annual cf

50
Q

Prime Cost

51
Q

Conversion Cost

52
Q

OH Application using cost driver

A

Actual cost driver * OH

53
Q

Equivalent Units Under FIFO

A

Beg WIP% of units to be completed
- Beg WIP
+ Units transferred
+ Unit WIP Ending %
= Total Units

current cost/ total units

54
Q

Equivalent units Weighted avg

A

units completed + FG (% completed)

total cost/ units

55
Q

COGM

A

Wip Beg
+DM
+DL
+OH
- end wip
=COGS

56
Q

CM

A

Net sales - variable cost

57
Q

Controllable margin

A

Contribution Margin - fixed cost

58
Q

ROE Dupont

A

NP Margin * Assets TO * Financial leverage

59
Q

Residual income

A

Ni - ( NBV*Hurdle rate)

60
Q

Linner regression

61
Q

Absorption Approach

A

Sale-cogs =gm - variable -sga=ni

62
Q

Contribution approach

A

Sales- variable cost = CM- fixed=ni

63
Q

Fixed contribution margin

A

FC/CM Ratio

64
Q

BE IN units

A

Fixed cost/cmu

65
Q

BE in dollars

A

Fixed cost/cmr

66
Q

Required sales volume target profit

A

Fixed cost+ pretax profit/ cmu

67
Q

Sales dollar need to obtain desired profit

A

Fixed cost + pretax profit/ (cm unit)

68
Q

setting selling prices based on volume

A

FC+VC+Pretax profit/ (num unit sld)

69
Q

Margin of safety

A

total sale- be sales

70
Q

Margin of safety in unit

A

Margin saleft/ Total sales

71
Q

Budged production

A

Budget Purchase + desired ending inventory- BI

72
Q

DM budget

A

Budgeted production in units
+ DM EI
- DM BI
= UNITS
* PRICE
= DM COST

73
Q

DL Budget

A

Budgeted production
* hrs required
= ttl hrs
* hrly wage
= ttl wage

74
Q

DM Useage

A

Beg inventory + DM Cost = DM usegae

75
Q

DM PRICE Variance

A

Actual qty purchased * (Actual price - std price)

76
Q

DM Quantity

A

Std price * ( Actual qty used - Std qty allowed)

77
Q

DL rate variance

A

Actual hours * (Actual rate - std rate)

78
Q

DL efficiency

A

Standard rate * (actual hrs worked - std hours)

79
Q

VOH Variance

A

Actual hours * ( actual hrs worked - sd hours allowed)

80
Q

VOH Efficiency rate

A

Std rate * ( different in actual and std hours worked)

81
Q

Flexible budger

A

Fixed OH + VOH - Actual OH

82
Q

FOH Budget

A

actual fixed oh - budget fixd oh

83
Q

FOH volume variance

A

budgeted fixed oh - std fixed oh

84
Q

price elasticity deman

A

change in qty/ change in price

Restudy - BEC (6 decks)

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