Equations Flashcards

1
Q

What is the equation for market capitalisation?

A

Cost per share x Number of shares

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2
Q

Income elasticity of demand equation

A

%change in QD / % change in income

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3
Q

Price elasticity of demand equation

A

%age change in qd %age change in price

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4
Q

Gross profit equation

A

Revenue - Direct costs

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5
Q

Operating profit equation?

A

Gross profit - Indirect cost

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6
Q

Net profit equation?

A

Operating - remaining costs

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7
Q

What is average cost?

A

total cost / level of production

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8
Q

What is market share equations?

A

company sales / total sales x 100

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9
Q

What is the gearing ratio equation?

A

non- current liabilities / capital employed x 100

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10
Q

What is the return on investment equation?

A

operating profit / capital invested x 100

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11
Q

What is the contribution equation?

A

selling price - variable cost

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12
Q

What is the break even equation?

A

Fixed costs/ contribution

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13
Q

What is the total contribution equation?

A

contribution x output

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14
Q

What is the market share value equation?

A

Total revenue / total market value

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15
Q

What is the ROCE (return on capital employed)?

A

Operating profit/ capital employed x 100

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