Extra Flashcards
1
Q
Dividend payout ratio from other equations
A
Dividend yield X PE ratio
2
Q
Earnings yield
A
Inverse of P/E ratio
Profits after tax
Divided by
Market capitalisation
3
Q
Purchasing power parity refers to the concept of that…
A
Exchange rates will ensure that the same goods sell for equivalent prices in different countries
4
Q
Internal methods of hedging interest rate risk
A
Matching
Smoothing
Netting
5
Q
External methods of hedging interest rate risk
A
Forward rate agreement
Futures
Options
Interest rate swap
