unit 10 Flashcards
rule of 72
72% return percentage= years to double
or 72% the # of years= years to double
NPV
subtract cost of investment from the present value of the future returns
IRR
discount rate that results in NPV of zero for series of future cash flows
which mean is always lower
geometric mean(unless all returns equal)
perpetuity
annual amount / interest rate
book value
liquidation but not intrinsic value of corporation
working capital
current assets-current liabilities
quick ratio
current assets- inventory/ current liabilities
current ratio
current assets/current liabilities
index most commonly used to analyze beta is
S and P 500
gross margin
NET sales- cogs/Net sales
current asset
cash equivalents
marketable securities
accounts receivable
inventories
current liability
accounts payable
interest paid this year
alpha
(Port actual return-RFR)- Beta* (MAR-RFR)
