#1
What is the formula for calculating compound interest?
P = A(1 + r)^t
A = P(1 + r)^t
A = P(1 - r)^t
P = A(1 - r)^t
#2
Which formula is used to calculate the present value of an annuity?
PV = P / (1 + r)^n
PV = P(1 + r)^n
PV = P / r
PV = P(1 - r)^n
#3
Which formula is used to calculate the price-to-earnings (P/E) ratio of a company?
P/E = Earnings per share / Price per share
P/E = Price per share / Earnings per share
P/E = Dividends per share / Price per share
P/E = Price per share / Dividends per share
#4
What is the formula for calculating the quick ratio (acid-test ratio)?
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Quick Ratio = Current Assets / Current Liabilities
Quick Ratio = Current Assets / Total Assets
Quick Ratio = Current Liabilities / Current Assets
#5
Which formula is used to calculate Return on Equity (ROE)?
ROE = Net Income / Total Equity
ROE = Total Equity / Net Income
ROE = Net Income / Total Assets
ROE = Total Assets / Net Income
#6
What is the formula for calculating the earnings per share (EPS) ratio?
EPS = Net Income / Total Equity
EPS = Net Income / Total Assets
EPS = Net Income / Average Outstanding Shares
EPS = Total Equity / Net Income
#7
Which formula is used to calculate the debt-to-equity ratio?
Debt-to-Equity Ratio = Total Debt / Total Equity
Debt-to-Equity Ratio = Total Equity / Total Debt
Debt-to-Equity Ratio = Total Assets / Total Equity
Debt-to-Equity Ratio = Total Equity / Total Assets
#8
What is the formula for calculating the current ratio?
Current Ratio = Current Assets / Current Liabilities
Current Ratio = Current Liabilities / Current Assets
Current Ratio = Total Assets / Total Liabilities
Current Ratio = Total Liabilities / Total Assets
#9
What is the formula for calculating the price-to-book (P/B) ratio?
P/B Ratio = Price per share / Book value per share
P/B Ratio = Book value per share / Price per share
P/B Ratio = Dividends per share / Price per share
P/B Ratio = Price per share / Dividends per share
#10
Which formula is used to calculate the earnings before interest, taxes, depreciation, and amortization (EBITDA)?
EBITDA = Revenue - Expenses
EBITDA = Net Income + Interest Expense + Taxes + Depreciation + Amortization
EBITDA = Net Income / Revenue
EBITDA = Earnings per share / Price per share
#11
What is the formula for calculating the future value of an investment with continuous compounding?
FV = P(1 + r)^t
FV = Pe^(rt)
FV = P(1 - r)^t
FV = Pe^t
#12
Which formula is used to calculate the dividend growth rate (g) in the Gordon Growth Model (Dividend Discount Model)?
g = (D1 - D0) / D0
g = D1 / D0
g = (D0 - D1) / D1
g = D0 / D1
#13
Which formula is used to calculate the net present value (NPV) of a series of cash flows?
NPV = CF / (1 + r)^t
NPV = CF / r
NPV = CF / t
NPV = ∑(CF / (1 + r)^t)
#14
What is the formula for calculating the interest coverage ratio?
Interest Coverage Ratio = EBIT / Interest Expense
Interest Coverage Ratio = EBITDA / Interest Expense
Interest Coverage Ratio = Net Income / Interest Expense
Interest Coverage Ratio = Operating Income / Interest Expense
#15
Which formula is used to calculate the Sharpe ratio?
Sharpe Ratio = (Portfolio Return - Risk-Free Rate) / Standard Deviation of Portfolio Return
Sharpe Ratio = (Portfolio Return - Risk-Free Rate) * Standard Deviation of Portfolio Return
Sharpe Ratio = (Portfolio Return + Risk-Free Rate) / Standard Deviation of Portfolio Return
Sharpe Ratio = (Portfolio Return + Risk-Free Rate) * Standard Deviation of Portfolio Return
#16
What is the formula for calculating the dividend yield?
Dividend Yield = Dividends per share / Stock Price
Dividend Yield = Stock Price / Dividends per share
Dividend Yield = Dividends per share * Stock Price
Dividend Yield = Stock Price * Dividends per share
#17
Which formula is used to calculate the return on investment (ROI)?
ROI = (Net Profit / Cost of Investment) * 100
ROI = (Cost of Investment / Net Profit) * 100
ROI = (Net Profit * Cost of Investment) / 100
ROI = (Cost of Investment * Net Profit) / 100
#18
What is the formula for calculating the yield to maturity (YTM) of a bond?
YTM = (C + (F - P) / n) / ((F + P) / 2)
YTM = (C + (F - P)) / n
YTM = (C + (P - F) / n) / ((F + P) / 2)
YTM = (C + (F + P) / n) / ((F - P) / 2)
#19
What is the formula for calculating the return on investment (ROI) for a marketing campaign?
ROI = (Revenue - Marketing Expenses) / Marketing Expenses
ROI = Revenue / Marketing Expenses
ROI = Marketing Expenses / Revenue
ROI = Marketing Expenses / (Revenue - Marketing Expenses)
#20
Which formula is used to calculate the sustainable growth rate (SGR) of a company?
SGR = ROE * Retention Ratio
SGR = ROE / Retention Ratio
SGR = Retention Ratio / ROE
SGR = ROE + Retention Ratio
#21
What is the formula for calculating the Weighted Average Cost of Capital (WACC)?
WACC = (E/V * Re) + (D/V * Rd) * (1 - Tax Rate)
WACC = (E/V * Re) + (D/V * Rd)
WACC = (E/V * Rd) + (D/V * Re) * (1 - Tax Rate)
WACC = (E/V * Rd) + (D/V * Re)
#22
Which formula is used to calculate the Black-Scholes option pricing model?
Black-Scholes Formula = (S * N(d1)) - (X * e^(-rt) * N(d2))
Black-Scholes Formula = (X * e^(-rt) * N(d2)) - (S * N(d1))
Black-Scholes Formula = (S * N(-d1)) - (X * e^(rt) * N(-d2))
Black-Scholes Formula = (X * e^(rt) * N(-d2)) - (S * N(-d1))
#23
Which formula is used to calculate the Economic Order Quantity (EOQ) in inventory management?
EOQ = sqrt((2 * D * S) / H)
EOQ = (D * S) / H
EOQ = sqrt((2 * H * S) / D)
EOQ = (H * S) / D
#24
Which formula is used to calculate the Gordon Growth Model (Dividend Discount Model)?
V0 = D1 / (r - g)
V0 = D0 / (r - g)
V0 = (D0 * (1 + g)) / (r - g)
V0 = (D1 * (1 + g)) / (r - g)
#25
What is the formula for calculating the future value of an annuity due?
FV = P * ((1 + r)^n - 1) / r
FV = P * ((1 + r)^n - 1)
FV = P * ((1 - r)^n - 1) / r
FV = P * ((1 - r)^n - 1)