Practice Questions Flashcards
Net Worth Formula
Assets - Liabilities = Net Worth
Outstanding Stock Formula
Issued Stock - Treasury Stock = Outstanding Stock
YTM at a Premium Formula
(Annual Int. - (Premium / Yrs to Mat.)) / Avg. $ of the bond
YTM at a Discount formula
(Annual Int. + (Discount / Yrs. To Mat.) / Avg $ of the bond
Ex Rights Formula
(CMV - Subscription $) / # of rights
Cum Rights formula
(CMV - Subscription $) / # of rights + 1
Reverse and Forward Split Formula
of shares * first # / second
Current Yield
Annual income / Investment
Muni Bond Quote
% of par, in fractions of 1/8th
Corp. Bond Quote
% of par, in fractions of 1/8
YTM Basis is also known as…
Basis Quote
Workable Indication
Dealer to dealer purchase of bonds
Nominal Quote
Informational purposes only on purchasing bonds
Holding a quote
1 hr. Hold time with a 5 min recall period
ERISA stands for
Employee Retirement Income Securities Act
RMD age
- Required to pay by April 1st of the following year
Qualified Opinion
May be legal uncertainty. Purchasers should be informed.
Unqualified Opinion
Issued unconditionally.
Ex-Legal
No legal opinion whatsoever.
GO Bonds
General Obligation Bonds - Bond payed by state or federal taxes. If state, then most likely paid by Ad Valorem tax.
Revenue Bond
Backed by revenues from the facility the bond finances.
Statutory Debt Limits
The amount of debt that a state or municipality can incur.
Tax Rate Expressed in Mills
1 Mill = $1 per $1,000 OR $0.001
Overlapping Debt
Coterminous Debt - Two different municipalities are tapping into the same tax payers wallet.
