Danko Formula Memorization Flashcards
1
Q
Current yield
A
Annual interest in dollars / bond’s market price
2
Q
Property’s intrinsic value
A
Net operating income (NOI) / capitalization rate
3
Q
Intrinsic value of Call
A
Market price - exercise price
4
Q
Intrinsic value of put
A
Exercise price - market price
5
Q
Tax exempt yield
A
Taxable yield * (1- marginal tax rate)
6
Q
Return on Equity
A
EPS / common equity (net worth or book value)
7
Q
Dividend payout ratio
A
Dividends paid / EPS
8
Q
Margin call
A
(1- initial margin %) / (1- maintenance margin %) x purchase price of stock
9
Q
Price to earnings ratio
A
Current market price / earnings
