Exam (elaborations)
CPA BEC Formulas With 100% Correct Solutions Latest Update
- Course
- Institution
CPA BEC Formulas With 100% Correct Solutions Latest Update...
[Show more]
Content preview
CPA BEC Formulas With 100% CorrectSolutions Latest Update
Weighted Average Cost of Capital- ANSWER (Cost of Equity x % Equity in Cap Structure)
+ (Weighted Average Cost of Debt x % of Debt in Cap Structure)
Weighted Average Cost of Debt- ANSWER Effective Annual Interest Payments / Debt
Outstanding
After Tax Cost of Debt- ANSWER Pretax Cost of Debt x (1 - Tax Rate)
Cost of Preferred Stock - ANSWER Dividend payments on the Preferred Stock / Issue
proceeds of the Preferred Stock
CAPM (Cost of Retained Earnings) - ANSWER Risk-less Rate + [Beta Factor(Market
return-Riskless Rate)]
DCF - ANSWER One Period Ahead Dividend expectation / Current Market price of
Outstanding Common Stock
BYRP (Cost of Retained Earnings) - ANSWER Pretax Cost of LT-Debt + Market Premium
Growth Rate ANSWER Retention Ratio x Return on Investment
Return on Investment ANSWER Net Income / AVG Invested Capital
Return on Assets ANSWER Net Income / Assets
, Return on Equity (ROE) ANSWER Net Income / Shareholders Equity
Total Debt to Capital Ratio ANSWER Total Debt / Total Capital (liabilities + equity)
Debt to Equity Ratio ANSWER Total Debt / Total Equity
Times Interest Earned Ratio - ANSWER EBIT / Interest Expense
Current Ratio - ANSWER Current Assets / Current Liabilities
Quick Ratio - ANSWER Cash + Marketable Securities + Receivables / Current Liabilities
Cash Ratio - ANSWER Cash + Cash Equivalents / Current Liabilities
Cash Conversion Cycle - ANSWER Inv Conv. Period + Rec Conv. Period - Payable
Deferral Period
Inventory Conversion Period - ANSWER 365 / Inv. Turnover
Inventory Turnover - ANSWER COGS / Average Inventory
Receivable Conversion Period - ANSWER 365 / AR Turnover
AR Turnover - ANSWER Credit Sales / Average Receivables
Payable Deferral Period - ANSWER 365 / AP Turnover
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Easton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now