Formulas Flashcards
Running yield.
Coupon/clean x 100
Redemption yield
Running yield +/- ((gain/loss÷years)÷clean) x 100
EPS
Profit to ordinary shareholders÷number of ordinary shares in issue
Liquidity ratio
Current assets-stock ÷ current liabilities
Gearing
Long-term debt ÷ Shareholder funds
Dividend yield
Dividend per share ÷ current share price x100
Dividend per share
Dividend paid in period÷number of ordinary shares x 100
Dividend cover on individual basis
Earnings per share÷dividend per share
Dividend cover on total profit basis
Profit to ordinary shareholders ÷ dividend paid to ordinary shareholders
P/E
Current market share price÷earnings per share
NAV
Ordinary shareholders’ net assets÷ ordinary shares issued
Net assets attributable to ordinary shareholders
Total capital - secured, unsecured loans and preference shares
Rental yield
((Monthly rent-monthly expenses)x12)÷(House price+legal fees etc.)x100
Growth velocity
GDP÷money supply
CAPM
Describe the symbols
PV
The present value of money - amount invested now to arrive at a future value
N
Time period over which money is invested. (Usually, years but can be any time period)
R or i
Rate of return used. (Expresed a decimal)
FV
Future value of money invested at a certain rate (r over n)
Simple compounding
RV=PV(1+r)n
Simple compound with an extra year of interest. (Paid at the start of the year)
Current price from future value
PV=FV÷(1+r)n
Chargeable gain on non qualifying policies
=(amount paid out + previous withdrawals) - (original investment + previous chargble gains)
