Equities

Question 1

What’s the Multiple-Period DDM formula?

Answer 1

Question 2

What’s the Gordon Growth Model (GGM) formula?

Answer 2

Question 3

What’s the Present Value of Growth Opportunities (PVGO) formula?

Answer 3

Question 4

What’s the H-Model formula?

Answer 4

H= 1/2 the amount of declining years

Question 5

What’s the Sustainable Growth Rate (SGR) formula?

Answer 5

Question 6

What’s the Free Cash Flow to the Firm (FCFF) and Free Cash Flow to Equity (FCFE) formulas beginning with net income?

Answer 6

Question 7

How do you calculate Non Cash Charges (NCC)?

Answer 7

Question 8

How do you calculate Fixed Capital Investment (FCinv)?

Answer 8

Question 9

How do you calculate Working Capital Investment (WCinv)?

Answer 9

Question 10

What is the Justified Leading P/E formula?

Answer 10

Question 11

What is the Justified Trailing P/E formula?

Answer 11

Question 12

What’s the PEG Ratio formula?

Answer 12

Question 13

What’s the Justified P/B Ratio formula?

Answer 13

Question 14

What’s the Justified P/S Ratio formula?

Answer 14

Question 15

What’s the Justified P/CF Ratio formula?

Answer 15

Question 16

What’s the EV/EBITDA Ratio formula, and how do you calculate each component?

Answer 16

Question 17

What’s the Trailing D/P Ratio formula and the Leading D/P Ratio formula? AKA Market Dividend Yield.

Answer 17

Question 18

What’s the Justified Dividend Yield (D/P) formula?

Answer 18

Question 19

What’s the Discount for Lack of Control (DLOC) formula?

Answer 19

Question 20

What’s the Total Discount formula?