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7 Cards in this Set
- Front
- Back
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Dividend yield =
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Annual Income / Market Share Price
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Annualized rate of return
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the return achieved by an investment over a period that is shorter than 1 year is "annualized" to make a valid comparison with the return provided by alternative investments. For example, an investment yielding 2% over a 6-month time frame has an annualized rate of return of 4%. If the investment grew from $1,000,000 to $1,210,000 over 2 years. The best way to do this is to try each choice given. The first choice is 10% - so multiply by a factor of 1.1 (1 is the original investment amount; .1 is the interest rate). $1,000,000 x 1.1 = $1,100,000 after the first year. $1,100,000 x 1.1 = $1,210,000 after the second year. Thus, this investment grew at a 10% annualized rate. |
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Tax-Free Equivalent Yield =
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(Corporate Yield %) x (100% - Tax Bracket %)
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Current Ratio =
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It is a measure of liquidity, because it looks at whether the company can pay its current bills as they come due. |
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Current Assets =
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Cash + Accounts Receivable + Inventory
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Net Working Capital =
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Current Assets - Liabilities
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Net Worth =
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All Assets - All Liabilities |
