Things To Learn

Question 1

Taylor Rule

Answer 1

Short term rate + expected inflation + .5* (inflation - expected inflation) + .5(GDPExpected GDP)

Question 2

Economic Income

Answer 2

After tax cash flows * BV of Firm T0 - Book Value of Firm T1

Book value is the NPV of all cash flows/ after tax cash flows expected by project

Question 3

Fixed and Floating Formulas

Answer 3

Fixed = 1-DF4 / sum of DF
Take Pv Of those cash flows to get value

Floating = next period interest rate + 1 * DF1

Question 4

TPPC. How to calculate

Answer 4

TPPC = Ending Obligation - Beg Value + contributions

You can also find the value of any independent factor within SIPABEER.

Question 5

Periodic Pension Expense

Answer 5

service + interest - expected + amortización

Service + net interest + past

Question 6

Information coefficient formula

Answer 6

2 * correct decisions -1

Question 7

Layer Method - explain (Alts)

Answer 7

The current rent in perpetuity + the INCREASE in the rent in perpetuity

Question 8

NOI formula

Answer 8

Total potential rent - vacancies - operating expenses

Question 9

FFO formula

Answer 9

Accounting Income + Depreciation + Defferred tax liabilities - Gains + Losses

Question 10

AFFO formula

Answer 10

FFO - non cash rent - recurring expenses

Question 11

DSCR formula

Answer 11

NOI / debt payments - we want this high

Question 12

Equity Dividend Rate (cash on cash return)

Answer 12

Cash return on cash invested .

First year cash flow / cash invested

Question 13

Economic income

Answer 13

Operating after tax cash flows + NPV beg - NPV end

Question 14

Dirty Surplus (junk in the trunk) is stored where?

Answer 14

OCI, not the income statement

Question 15

If a bond (with option) is near the money - what happens to its duration

Answer 15

It is lower than a straight bond. If the bond is well out of the money - it acts pretty much as a straight bond