Formulas To Memorize Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Current Yield

A

Annual Interest in Dollars/ Books Market Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Property’s Intrinsic Value

A

Net Operating Income (NOI)/Capitalization Rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Intrinsic Value of a Call

A

Market Price - Exercise Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Intrinsic Value of a Put

A

Exercise Price - Market Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Tax exempt Yield

A

Taxable Yield * (1-marginal tax rate)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Return on Equity (ROE)

A

Earnings available for common (EPS)/Common equity (net worth or book value)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Dividend Payout Ratio

A

Common dividends paid/ Earnings available for common/(EPS)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Margin Call

A

1-initial margin percentage/1-maintenance margin percentage X Purchase price of stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Price/Earnings Ratio (P/E Ratio)

A

Current market price/Earnings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly