Formulas You Need to Memorize Flashcards
1
Q
Current Yield
A
Annual Interest in Dollars / Bond’s Market Price
2
Q
Property’s Intrinsic Value
A
Net Operating Income / Capitalization Rate
3
Q
Intrinsic Value of a Call
A
Market Price - Exercise Price
4
Q
Intrinsic Value of a Pu
A
Exercise Price - Market Price
5
Q
Taxable Equivalent Yield
A
Tax Exempt Yield / 1 - Marginal Tax Rate
6
Q
Return on Equity (ROE)
A
Earnings per share / Common Equity (AKA Net Worth or Book Value)
7
Q
Dividend Payout Ratio
A
Common Dividends Paid / EPS
8
Q
Margin Call
A
(1 - initial margin percentage / 1 - maintenance margin percentage) x purchase price of stock
9
Q
Price to Earnings Ratio (P/E)
A
Current Market Price / Earnings
