![]() Average Annual Compensation Of Workers = Base Salary of a Worker + Incentive Pay (Productivity excluding rejects * Incentive).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).Deprecation Expense: Number *.05 (because the deprecation expense is 5%).Interest Coverage Ratio= Operating Profit / Annual Interest Expense.Return On Average Equity = Net Profit / Average Shareholders Equity (Year 11 total Share Holder Equity + Year 12 Shareholder Equity / 2).PLEASE COMMENT ANY QUIZ 2 EQUATIONS NOT COVERED TO HELP THE NEXT TEAM : ) There is a lot more to Quiz 2 than the equations, make sure to check out my other blog posts listed below to ensure your success. The SlideShare is linked to below as well. : ) I’ve uploaded a YouTube video again for your convenience. I will research the correct equation and then append this post. ![]() If ANY equations aren’t on there, please comment below. Below are the most commonly used equations for the Business Strategy Game Quiz 2. The simulation uses non-standard definitions for financial formulas so googling the equation often won’t work. I commonly see kids get 40% on the second quiz. The Business Strategy Game Quiz 2 is MUCH more challenging than the first quiz.
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