Formula's to Memorize

Question 1

Dividend Growth Model

Answer 1

V=Do/r (Zero Growth)

Do= Dividend, r= req return

V=Do/r-g (consant Growth) g= growth rate

Question 2

CV, Coefficient of Variation

Answer 2

SD/mean

Question 3

Valuation of Real Estate

Answer 3

NOI/Cap Rate

Question 4

Risk Adjusted Return

Answer 4

mean/Beta

Question 5

TEY

Answer 5

Tax Free Yield/(1-MTR)

If both state and fed are given
TFY/(1-FMTB)(1-SMTB)