Finance 3000 Midterm Formulas &
Examples (Ch. 1-7) Questions with
complete solution
Net Working Capital - correct answers Current Assets - Current Liabilities
EAR (Effective Annual Rate) - correct answers (1 + (APR / n)) ^ n - 1
FV or PV of an Annuity Due - correct answers Ordinary Annuity * (1 + interest
rate)
Balance Sheet - correct answers Assets = Liabilities + Equity
EPS (Earnings Per Share) - correct answers Net Income available to
Common Stock / number of Common Stock shares outstanding
Book Value Per Share - correct answers Stockholder's Equity / number of
Common Stock shares outstanding
Net Income - correct answers Revenue - Expenses
Operating Income is also referred to as... - correct answers EBIT (Earnings
Before Interest & Tax)
Rule of 72 - correct answers 72 / interest rate = amount of time for your
money to double
Examples (Ch. 1-7) Questions with
complete solution
Net Working Capital - correct answers Current Assets - Current Liabilities
EAR (Effective Annual Rate) - correct answers (1 + (APR / n)) ^ n - 1
FV or PV of an Annuity Due - correct answers Ordinary Annuity * (1 + interest
rate)
Balance Sheet - correct answers Assets = Liabilities + Equity
EPS (Earnings Per Share) - correct answers Net Income available to
Common Stock / number of Common Stock shares outstanding
Book Value Per Share - correct answers Stockholder's Equity / number of
Common Stock shares outstanding
Net Income - correct answers Revenue - Expenses
Operating Income is also referred to as... - correct answers EBIT (Earnings
Before Interest & Tax)
Rule of 72 - correct answers 72 / interest rate = amount of time for your
money to double
