Formulas Flashcards

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1
Q

Working Capital

A

Current Assets - Current Liabilities

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2
Q

Quick Asset Ratio

A

Quick Assets (CA - Inv) / Current Liabilities

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3
Q

Current Ratio

A

Current Assets / Current Liabilities

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4
Q

Debt to Equity Ratio

A

Debt / Total Capitalization (total debt + total equity)

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5
Q

Book Value Per Share

A

(Tangible Assets - Liabilities - Par Value of Preferred Stock) / Shares if common stock outstanding

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6
Q

EPS

A

Earnings available to common (remaining earnings after preferred stock has been paid) / number of shares outstanding

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7
Q

Current Yield

A

Annual Dividends/Income / current market price

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8
Q

Dividend Payout Ratio

A
  • annual dividends per common share / earnings per share
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9
Q

P/E ratio

A

Current Market Price of Common Shares / EPS

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10
Q

EPS

A

Current Market Price / PE Ratio

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11
Q

Securities Market Line Formula

A

[(rm - rf) x b] + rf

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12
Q

Total Return

A

(Income + Capital Appreciation) / Investment

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13
Q

Mutual Fund Returns

A

Annual Dividend / Current Price = Current Return

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14
Q

Holding Period Return

A
  • (Sold + Income) - Investment/ Investment
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15
Q

Annualized Return

A
  • Return x (12 / # of months investment was held)
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16
Q

Sharpe Ratio

A

(rP - rF) / SD

17
Q

Required Rate of Return

A

Rf + risk premium

18
Q

POP

A

POP = NAV / (1-SC%)

19
Q

Alpha

A

((rM-rF)xb) - (rP-rF)

20
Q

CAPM (Expected Rate of Return)

A

rF + ((rM-rF)xb)

21
Q

Average Cost

A

= total invested/ total number of shares

22
Q

Average Price Per Trade

A

= total share price / no. of investment periods

23
Q

Margin

A

LMV + CR - SMV + DR?

24
Q

Breakpoint

A

Average cost per share = total cost / total number of shares