Formulas To Memorize Flashcards
1
Q
Current Yield
A
Annual Interest in dollars
/
bonds market price
2
Q
Property’s Intrinsic Value
A
NOI / Capitalization Rate
3
Q
Intrinsic Value of Call Option
A
Market Price - Exercise Price
4
Q
Instrisic Value of a Put Option
A
Excercise Price - Market Price
5
Q
Taxable Equivalent Yield
A
Tax Exempt Yield / (1-marginal tax rate)
6
Q
Tax Exempt Yield
A
Taxable Yield * (1-marginal tax rate)
7
Q
Return on Equity (ROE)
A
Earnings Available for common (EPS) / common equity (net worth or book value)
8
Q
Dividend Payout Ratio
A
Common Dividends Paid / Earnings Available for Common (EPS)
9
Q
Stock Yield
A
Dividends per share / stock price per share
10
Q
Price / Earnings Ratio
A
P/E ratio x earnings equal instrisic value
