UGBA 10 Study Guide - Midterm Guide: Time Deposit, Tax Efficiency, Profit Margin

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: Banks Cristina

Document Summary

Contribution margin = price - unit variable cost = profit - variable costs. Profit = sales - costs = net income = revenues - expenses. Planned economy: govt controls all or most factors of production. Marked economy: individual producers/consumers control production by balancing supply/demand. Mixed market economy compromise between both (most countries) Dividend : cash payment paid by company to stockholder for each share. Dividend yield = annual dividend paid / stock pride. Outside investors who provide new capital for firms in return for share of equity. Lists a firm"s revenues and expenses to show whether profiting or losing. Long-term liability : debt not due for at least a year. Depreciation : method to distribute the cost of an asset over its useful life. Current ratio = current assets / current liabilities. Return on equity = annual net income / stockholders" equity. How much a company generates with money shareholders have invested.