Business Strategy Game Quiz 2 Equations:
Return On Average Equity = Net Profit / Average Shareholders Equity (Year 11 total Share Holder Equity + Year 12 Shareholder Equity / 2)
Interest Coverage Ratio= Operating Profit / Interest Income
Deprecation Expense: Number *.05 (because the deprecation expense is 5%)
Default Risk Ratio = Free Cash Flow ((Net Profit + Depreciation – Dividends) ) / Combined Annual Principal Payments on Outstanding Loans (Overdraft Loans, Current Portions of Long Term Loans, 1 Year Bank Loans)
Average Annual Compensation Of Workers = Base Salary of a Worker + Incentive Pay (Productivity excluding rejects * Incentive)
Operating Profit Margin = Operating Profit / Net Revenues From Footwear Sales
Earnings Per Share (EPS) = Net Profit / Shares Of Stock Outstanding
Cash Receipts From Footwear Sales = 25 Percent of Previous Year from Receivables and 75% of current year
Debt-Asset Ratio = (Total Debts (Long Term Bank Notes, Current Portion of Long Term Notes, 1 Year Loans, 5 Year Loans, Overdraft Loans) / Total Assets
Cost Allocation Principles
Internet shoes / (internet Shoes + region Shoes) = percent of shoes in internet
Percent of Shoes in internet* total spent on advertising / number of shoes sold in that region
Just like the first quiz, Quiz 2 is timed. I recommend having this and the other Business Strategy Game Quiz 2 tabs open already and using control F to find the necessary equations.
There is a lot more to Business Strategy Game Quiz 2 than just equations. You will also have to understand exchange rates and tariffs intimately and how the game works. There are quite a few game concept questions that go pretty deep. I cover all of these topics in different YouTube videos and posts. Please check them out to ensure you’re success.
If there are any topics not covered in my blog posts, the answers are not just located in the Business Strategy Game Player’s Guide,