Formulas Flashcards
Working Capital
Current Assets - Current Liabilities
Quick Asset Ratio
Quick Assets (CA - Inv) / Current Liabilities
Current Ratio
Current Assets / Current Liabilities
Debt to Equity Ratio
Debt / Total Capitalization (total debt + total equity)
Book Value Per Share
(Tangible Assets - Liabilities - Par Value of Preferred Stock) / Shares if common stock outstanding
EPS
Earnings available to common (remaining earnings after preferred stock has been paid) / number of shares outstanding
Current Yield
Annual Dividends/Income / current market price
Dividend Payout Ratio
- annual dividends per common share / earnings per share
P/E ratio
Current Market Price of Common Shares / EPS
EPS
Current Market Price / PE Ratio
Securities Market Line Formula
[(rm - rf) x b] + rf
Total Return
(Income + Capital Appreciation) / Investment
Mutual Fund Returns
Annual Dividend / Current Price = Current Return
Holding Period Return
- (Sold + Income) - Investment/ Investment
Annualized Return
- Return x (12 / # of months investment was held)
Sharpe Ratio
(rP - rF) / SD
Required Rate of Return
Rf + risk premium
POP
POP = NAV / (1-SC%)
Alpha
((rM-rF)xb) - (rP-rF)
CAPM (Expected Rate of Return)
rF + ((rM-rF)xb)
Average Cost
= total invested/ total number of shares
Average Price Per Trade
= total share price / no. of investment periods
Margin
LMV + CR - SMV + DR?
Breakpoint
Average cost per share = total cost / total number of shares
