Mock Exam Flashcards
Degree of Total Leverage
(Revenue-Variable Cost)/Net Income
Degree of Financial Leverage
Operating Income/Net Income
Degree of Operational Leverage
(Revenue-Variable Cost)/ Operating Income
Which is the model type of indexes for ETF?
Sector index.
What are 5 stages of industry?
Start-up, growth, shakeout, mature, and decline.
What is the ex-dividend date?
It is the trading date on which dividend is not owed to a new buyer of the stock.
Which version of Dividend Discount model is appropriate to value fairly young publicly traded company?
Three stage DDM.
What is surety bond?
A performance guarantee.
What is an affirmative covenant?
The covenant that issuer has to do. To the contrary, there is negative covenants that the issuer should not do.
What is the repo margin?
Discount between the value of collateral and the loan amount.
The convexity of puttable bond is always
positive.
What is operating profit margin?
Operating income/revenue.
What is the difference between forward and future.
Future is more standardized and traded at future exchange.
A swap the involves fixed payment for a floating payment is similar to
Series of off market forward contracts.
What is deep in the money?
An option that has an exercise price significantly below (for a call option) or above (for a put option) the market price of the underlying asset. 得している状態。
