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Flashcards in CTP Math Formulas Deck (74)
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1

Money Market Yield

Holding Period Yield = 360 / Days to Maturity

2

Cash Turnover Ratio

365 / Cash Conversion Cycle

3

Working Capital

Current Assets - Current Liabilities

4

Current Asset Turnover

Revenues / Current Assets

5

Degree of Operating Leverage

% Change in EBIT / % Change in Sales

6

Price of Preferred Stock

Preferred Stock Annual Dividend / Required Rate of Return

7

Average Past Due

DSO - Average Days of Credit Terms

8

Holding Period Yield

(Cash Received at Maturity - Amount Invested) / Amount Invested

9

Fixed Charge Coverage Ratio

(EBIT + Lease Payments) / (Interest Expense + Lease Payments)

10

Days' Inventory

(Inventory / Cost of Goods Sold) X 365

11

Days' Receivables

(Accounts Receivable / Revenues) X 365

12

Taxable Equivalent Yield

Tax Exempt Yield / (1 - Investor's Marginal Tax Rate)

13

Future Value

PV(1+i)n

14

Value at Risk (VaR)

Average - 1.65 X Standard Deviation

15

Net Profit Margin

Net Income / Revenues

16

Perferred Stock Dividend

Preferred Stock Dividend Rate X Par Value

17

Earnings Credit

CB X (1-RR) X ECR(D/365)

18

Days' Payables

(Accounts Payable / Cost of Goods Sold) X 365

19

Next Period Forecast

(alpha)(Current Period Actual) + (1 - Alpha)(Current Period Forecast)

20

Return on Common Equity

(Dollar Discount + Dealer Fee + Backup Line Fee) / Usable Funds x 365 / Days to Maturity

21

After Tax Yield

Taxable Yield X (1 - Investor's Marginal Tax Rate)

22

Prorated Backup Line of Credit Fee

Annual Fee Rate X CP Issue Size X (Days to Maturity / 360)

23

Current Ratio

Total Curent Assets / Total Current Liabilities

24

Annual Yield

Holding Period Yield X (Days in Year / Days to Maturity)

25

Dollar Discount

Par Value - Purchase Price

26

Return on Total Assets (ROTA)

Net Income / Total Assets

27

Economic Value Added (EVA)

EBIT(1 - Tax Rate) - (WACC)(Long Term Debt + Equity)

28

Times Interest Earned

EBIT / Interest Expense

29

Weighted Average Cost of Capital (WACC)

WdRd(1 - T) + WeRe

(Percent of Debt X After Tax Cost of Debit) + (Percent of Equity X Cost of Equity)

30

Discount Cost

(D / 100-D) X (365 / N-T)