Understanding And Calculating Key Financial Metrics Flashcards
1
Q
Formula for price to earnings ratio
A
P/E Ratio = share price/earnings per share
2
Q
Formula for dividend yield
A
Dividend yield = annual dividend per share/share price * 100
3
Q
Formula for earnings per share
A
EPS = net income/number of shares outstanding
4
Q
Formula for return on equity
A
ROE = net income/total equity * 100
5
Q
Formula for bond yield
A
Bond yield = annual interest payments / current bond price * 100
6
Q
Formula for simple interest
A
P * r * t
P = principle amount
R = interest rate
T = time
7
Q
Formula for compound interest
A
P * (1+r)^t-P
P = principle amount
R = interest rate
T = time
