UGBA 10- Module 3, Formulas
contribution margin - correct answer price- variable cost
profit - correct answer quantity sold(price-variable cost) - fixed cost
quantity sold(CM) - fixed cost
*breakeven- profit=0
accounting equation - correct answer A=L+SE
assets= liabilities + stockholders' equity
price earnings ratio - correct answer stock price/earnings per share
dividend yield - correct answer dividends per share/stock price
earnings per share - correct answer company's earnings/number of shares outstanding
market capitalization of a company - correct answer share price * number of shares outstanding
liquidity ratio - correct answer current ratio= current assets/current liabilities
should be 2:1
net income - correct answer revenues-expenses
contribution margin - correct answer price- variable cost
profit - correct answer quantity sold(price-variable cost) - fixed cost
quantity sold(CM) - fixed cost
*breakeven- profit=0
accounting equation - correct answer A=L+SE
assets= liabilities + stockholders' equity
price earnings ratio - correct answer stock price/earnings per share
dividend yield - correct answer dividends per share/stock price
earnings per share - correct answer company's earnings/number of shares outstanding
market capitalization of a company - correct answer share price * number of shares outstanding
liquidity ratio - correct answer current ratio= current assets/current liabilities
should be 2:1
net income - correct answer revenues-expenses
