Final cards to learn Flashcards
What is an income statement?
Income earned and expenditure incurred
What are the 13 headers on an income statement
Profit Gross
Profit Operating
Profit before tax
tax
Reveneue
Cost of sales
Cost of distrubution
Cost of Admin
Cost of Finance
Loss on plants
and Earning Per Share
How to calculate Earnings per share
(Net income - Dividend on preferred shares) / number of shares
What are the five elements on a financial statement?
Assets, Liabilities, Equity , Revenue & Expenses
What is Capital Expenditure
Money spent to buy non-current assets, such as PPE.
What falls under Non-Current Assets
Property, Plant & Equipment, Intangible assets, investments
What falls under Current Assets?
Inventories, Trade and other receivables, Pre-payments, Cash.
What is a Non-Current asset
Long term investments, continuing use by the company and confers the right to future economic benefits.
Gross Profit Margin Equation?
GPM = (GP/Revenue) X 100
Operating Profit Margin Equation?
OPM = (OP/Revenues) X 100
High gross dividend yield will indicate?
Share Price and confidence in dividends being paid is low
Net Redemption Yield
NRY Looks at the after-tax cash flow. As a result it is a useful measure for tax paying, long term investors
Role of trustee
Protect the interests of the shareholders
Municipal Bonds
Local ‘Municipal’ bonds, often guaranteed bonds.
Corporate Bonds
Decentralized network of corporate debt trading
Eurobonds
An interest-bearing security that is issued internationally.
More precisely, a Eurobond is an international bond issue denominated in a currency different from that of the financial center(s) in which the bond is issued.
Most Eurobonds are issued in bearer form through bank syndicates
Treasury Bonds
T + 1 30 Year maturity of government debt
Precipice Bond
‘precipice’ is that if a reference index, such as a stock market index, falls by more than a certain level over that period, the capital will suffer an equivalent loss
Role of a Market Maker
A market maker is a participant in financial markets who continuously provides buy and sell prices
Preference Shares
No voting shares but get paid first
What happens to rights once they expire
They become invalid
What is a sinking fund
Bond repayment is set aside and invested in the market, but is paid in full at maturity.
DLT
the replacement of one, centralised ledger of transactions with a decentralised network of computers all holding copies of exactly the same ledger
TCFD (4 Areas)
FSB Established.
- Governance Disclosure
- Strategy Disclosure
- Risk Management Disclosure
- Metrics and Targets Disclosure
