Formulas You Need to Memorize Flashcards Preview

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Flashcards in Formulas You Need to Memorize Deck (9)
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1
Q

Current Yield

A

Annual Interest in Dollars / Bond’s Market Price

2
Q

Property’s Intrinsic Value

A

Net Operating Income / Capitalization Rate

3
Q

Intrinsic Value of a Call

A

Market Price - Exercise Price

4
Q

Intrinsic Value of a Pu

A

Exercise Price - Market Price

5
Q

Taxable Equivalent Yield

A

Tax Exempt Yield / 1 - Marginal Tax Rate

6
Q

Return on Equity (ROE)

A

Earnings per share / Common Equity (AKA Net Worth or Book Value)

7
Q

Dividend Payout Ratio

A

Common Dividends Paid / EPS

8
Q

Margin Call

A

(1 - initial margin percentage / 1 - maintenance margin percentage) x purchase price of stock

9
Q

Price to Earnings Ratio (P/E)

A

Current Market Price / Earnings