Formulas To Memorize Flashcards
1
Q
Current Yield
A
Annual Interest in Dollars/ Books Market Price
2
Q
Property’s Intrinsic Value
A
Net Operating Income (NOI)/Capitalization Rate
3
Q
Intrinsic Value of a Call
A
Market Price - Exercise Price
4
Q
Intrinsic Value of a Put
A
Exercise Price - Market Price
5
Q
Tax exempt Yield
A
Taxable Yield * (1-marginal tax rate)
6
Q
Return on Equity (ROE)
A
Earnings available for common (EPS)/Common equity (net worth or book value)
7
Q
Dividend Payout Ratio
A
Common dividends paid/ Earnings available for common/(EPS)
8
Q
Margin Call
A
1-initial margin percentage/1-maintenance margin percentage X Purchase price of stock
9
Q
Price/Earnings Ratio (P/E Ratio)
A
Current market price/Earnings
