Calculations

Question 1

Outstanding Stock

Answer 1

Outstanding stock = Corp’s issued stock - stock repurchased (Treasury Stock)

Question 2

Market Capitalization (Market Cap)

Answer 2

Market Capitalization (Market Cap) = Co’s outstanding common shares × Co’s current price

Question 3

Right to # of Shares to Purchase by Stockholder

Answer 3

Right to # of Shares to Purchase by Stockholder = Additional Co Shares × Stockholder Current % of Ownership

Question 4

Taxable Equivalent Yield

Answer 4

Taxable Equivalent Yield = Tax-Free Yield ÷ (100% - Tax Bracket %)
• Example:
○ 6% tax-free municipal
○ 25% tax bracket

6% ÷ (100% - 25%) = 0.06 ÷ 0.75 = 8% (0.08)

Question 5

Net (After-Tax) Yield

Answer 5

Net (After-Tax) Yield = Taxable Yield × (100% - Tax Bracket %)
• Example:
○ 8% corp bond
○ 25% tax bracket

8% × (100% - 25%) = 0.08 × 0.75 = 6% (0.06)

Question 6

Net Assets and NAV

Answer 6

• Net Assets = Total Assets - Expenses
• NAV = Net Assets ÷ Shares Outstanding

NAV per Share = (Net Assets - Total Liabilities) ÷ # of Shares Outstanding

Question 7

POP, Sales Charge %, and Sales Load %

Answer 7

POP = NAV ÷ (100% - Sales Charge %)
Sales Charge % = (POP - NAV) ÷ POP
Sales load % = Sales Charge ÷ POP