Calculations Flashcards
Current yield
Annual interest divided by bonds market price
Tax exempt yield
Taxable yield * (1-marginal tax rate)
Dividend payout ratio
Common dividends paid divided by earning available for common
Margin call
(1- initial margin percentage) divided by (1-maintenance margin percentage) * purchase price of stock
P/E ratio
Current market price divided by earnings
Like kind exchanges
Realized gain: (FMV of property received plus boot received)- (adjusted value of your property plus boot given)
Recognized gain: lessor of realized gain or boot received
New basis: FMV of property received - ( realized gain - recognized gain)
Real return
Inflation adjusted return calculation
Yield to call
Find PV of comparable bonds
Use PV to solve for i/yr
PV is what you solved
FV is callable amount
N years to called
Coupon
Stock yield
Dividend per share divided by stock price per share
Maintenance call
Equity required (usually .25 (# of shares current price)) - actual equity ((# of shares * current price) - borrowed amount))
Book value
Common stock outstanding + capital excess of par + retained earnings - liabilities
Changing decimal places to 4 on calc
Shift = 4
Changing period per year
1 shift PMT (P/YR)
Cash received from customers
Total expenses + net income = total revenue
Total revenue + decrease in accounts receivable
Net profit margin
Earnings before tax * (1-t) divided by sales
