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36 Cards in this Set
- Front
- Back
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HPR
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(ending value-beginning value+income)/beginning value
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APR
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HPR/t
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After-tax APR
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APR(1-F)
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Leverage
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Assets/equity
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Margin
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equity/assets
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Current Ratio
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assets/liabilities
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quick ratio
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(assets-inventory)/liabilities
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Asset Turnover
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sales/total assets
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Interest Coverage Ratio
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EBIT/interest expense
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Asset Turnover
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sales/total assets
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Profit Margin
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profits/sales
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ROA
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profits/assets
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ROE
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profits/equity
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Market/Book Ratio
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market price/book price
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Book Price
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total equity/# of shares
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Dupont Ratio
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profit margin x asset turnover=ROA
ROA x leverage=ROE |
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Dividend Discount Model
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PV=D1/(k-g)
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Dividend and Earning Model(Finite Holding Period)
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PV= (Dt+FVt)/(1+k)^t
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Future Value
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PV(1+CAPR)^t
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(1+CAPR)^t
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1+total HPR
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Short Interest Ratio
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# shorts/avg. daily volume
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HPR of a foreign stock
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(1+HPRcurrency)x(1+HPRstock) = 1 + total HPR
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TEY
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Muni Yield/(1-F)(1-S)
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After Tax Corporate Yield
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Corporate Bond Yield x (1-F)(1-S)
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Modified Duration
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Macauley Duration/(1+YTM)
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Conversion Value
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Conversion Ratio x current market price
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Converstion Equivalent
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current price/conversion ratio
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Conversion Premium
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current price-conversion value
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Sharpe Ratio
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(portfolio return-risk free rate)/standard deviation
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Jensen's Alpha
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actual return-required return
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5 risk components of a bond
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interest rate risk, purchasing power risk(inflation), business/financial risk, liquidity risk, call risk
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Treasury STRIPS
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individual coupon payments and the final payment are stripped out of a treasury security and separated into distinct securities
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Yankee Bond
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bond denominated in US dollars that is issued by foreign banks and corporations
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TIPS
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inflation protected security that protects the buyer from inflationary risk, coupon rate is fixed but payment isn't b/c par value changes
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T-Bills
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sold at a discount and paid out upon reaching maturity, no coupon payments
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TRIN
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(# stocks down/# stocks up) / (volume down/volume up)
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