Series 66 - Key Formulas Flashcards
How to Calculate: Personal Net Worth
Assets - Liabilities
How to Calculate: Discretionary (Net) Income
Income - Expenses
How to Calculate: Conversion Ratio
Par Value / Conversion Price
How to Calculate: Net Asset Value (NAV)
(Assets - Liabilities) / Shares Outstanding
How to Calculate: Breakeven on a Long Stock + Long Put
Cost of Stock + Put Premium
How to Calculate: Total Profit on Futures Trade
(Sales Price - Purchase Price) X (Contract Size)
How to Calculate: Working Capital
Current Assets - Current Liabilities
How to Calculate: Current Ratio
Current Assets / Current Liabilities
How to Calculate: Quick Ratio
(Current Assets - Inventory) / Current Liabilites
How to Calculate: Debt-to-Equity Ratio
Total Debt / Total Shareholder Equity
How to Calculate: Earnings Per Share (EPS)
(Net Income - Prefered Dividend) / Common Stock Outstanding
How to Calculate: Price-to-Earnings Ratio (P/E)
Price of Common Stock / Earnings Per Share (EPS)
How to Calculate: Price-to-Book Ratio
Price of Common Stock / Book Value Per Share
How to Calculate: Dividend Discount Model
Annual Dividend / Discount Rate
How to Calculate: Expected Return
(Bullish Return X Probability of Bullish Market)
+
(Neutral Return X Probability of Neutral Market)
+
(Bearish Return X Probability of Bearish Market)
How to Calculate: Expected Return (CAPM)
Ri = Rf + Beta(Rm - Rf)
How to Calculate: Risk Premium
Rm - Rf
How to Calculate: Alpha
Actual Return - Expected Return
How to Calculate: Risk Adjusted Return
Rate of Return - Risk-Free Return
How to Calculate: Sharpe Ratio
(Portfolio Return - Risk-Free Rate) / Portfolio STD
How to Calculate: Present Value (Po)
Pn / (1+r)^n
How to Calculate: Future Value (Pn)
Po X (1+r)^n
How to Calculate: Present Value Perpetuity
Payment at Perpetuity / Discount Rate
How to Calculate: Rule of 72 (# of Years for Money to Double)
72 / Rate of Return
How to Calculate: Rule of 72 (Rate of Return Req. for Money to Double)
72 / # of Years to Double
How to Calculate: Net Present Value
Value of Discounted Cash Flow - Market Value of Instrument
How to Calculate: Current Yield (Stock)
Annual Dividend / Current Market Price
How to Calculate: Current Yield (Bond)
Annual Interest / Current Market Price
How to Calculate: Dividend Payout Ratio
Annual Dividend / Earnings Per Share (EPS)
How to Calculate: Total Return
(Ending MV - Starting MV) + Dividend + Interest / Starting MV
How to Calculate: Real Return (Inflation-Adjusted)
Rate of Return - Inflation
How to Calculate: Taxable Equivelent Yield
Municiple Yield (Non-Taxable) / (100% - Tax Bracket %)
How to Calculate: Net Yield (After-Tax)
Taxable Yield X (100% - Tax Bracket %)
