FINANCE 301 Formulas Practice |Questions
Solved 100% Correct | Verified Answers
basic earning power - ANSWER EBIT/Total Assets *profitability ratio
operating margin - ANSWER EBIT/SALES *profitability ratio
Market Book - ANSWER market price per share/book value per share *market value
ratio
Price Earnings - ANSWER Price per share/earnings per share *market value ratio
time interest earned - ANSWER EBIT/interest charges *debt management ratio
total debt to total capital - ANSWER total debt/total capital *debt management ratio
total asset turnover - ANSWER sales/total assets *asset management ratio
fixed asset turnover - ANSWER sales/net fixed assets *asset management ratio
return on invested capital - ANSWER EBIT(1-T)/total invested capital *profitability ratio
return on common equity - ANSWER net income/common equity *profitability ratio
return on total assets - ANSWER net income/total assets *profitability ratio
Solved 100% Correct | Verified Answers
basic earning power - ANSWER EBIT/Total Assets *profitability ratio
operating margin - ANSWER EBIT/SALES *profitability ratio
Market Book - ANSWER market price per share/book value per share *market value
ratio
Price Earnings - ANSWER Price per share/earnings per share *market value ratio
time interest earned - ANSWER EBIT/interest charges *debt management ratio
total debt to total capital - ANSWER total debt/total capital *debt management ratio
total asset turnover - ANSWER sales/total assets *asset management ratio
fixed asset turnover - ANSWER sales/net fixed assets *asset management ratio
return on invested capital - ANSWER EBIT(1-T)/total invested capital *profitability ratio
return on common equity - ANSWER net income/common equity *profitability ratio
return on total assets - ANSWER net income/total assets *profitability ratio