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32 Cards in this Set
- Front
- Back
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Full Price of a Bond (Dirty Price) (Formula)
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Clean Price + Accrued Interest
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TIPS Coupon Payment (Formula)
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Inflation Adj. Par Value * [Coupon Rate/2]
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Tax Equivalent YTM (Formula)
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YTM * (1-t)
where: YTM=Yield to Maturity, t=Marginal Tax Rate |
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Tax Free YTM for a Taxable Bond (Formula)
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(Tax Free YTM)/[1-t]
where: YTM=Yield to Maturity, t=Marginal Tax Rate |
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Forward Rate Agreement (FRA) (Formula)
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NP * [(Float - Fwd)(days/360)]/[1+(Float)(days/360)]
where: N.P.=Notional Principle, Float=Float Rate, Fwd=Forward Rate |
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Cost of Common Equity (CAPM) (Formula)
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RrR+ B(Rm - RrR)
where RfR=Risk Free Rate, Rm=Expected Rate of Return, B=Stock's Beta Coefficient |
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Cost of Common Equity (DDM) (Formula)
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D1/[P0 -F] + g
where: D1=Dividends next period, P0=Price of stock in Current Period F=Flotation Cost g=expected growth Rate of Dividends |
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Bond Yield Plus Risk Premium (Formula)
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YTM + Risk Premium
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Country Risk Premium
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SY+ (Country stock Index Return/US Bond Index Return) + US Equity Risk Premium
where: SY=Sovereign Yield Spread |
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Marginal Cost of Capital (MCC) also called new WACC
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(New WACC/old WACC)-1
where: WACC=Weighted Average Cost of Capital |
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Earnings Multiplier and EPS Connection
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Expected Growth Rate (Retention Rate)
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(1 – dividend payout rate)
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Future Divended
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D(o)(1+g)
where: D(o)=Divended Previous Period g=Expected Growth Rate (Retention Rate) |
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Operating Earnings Ratio
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EBIT/Sales
where: EBIT=Earnings Before Interest and Taxes (Operating Income) |
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Price To Cash Flow (Formula)
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P/CF
Cash flow is a truer metric of a company's results in comparison to earnings. |
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Cash Flow from Operations
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This is Operating Income (EBIT).
Revenue - COGS - Operating Cost - Interest Expense This is the amount of cash available after all Operating Costs are paid. |
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Gross Margin (Gross Profit)
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Revenue - COGS
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Implied Growth rate
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retention rate * ROE
or (1-DPR) * (Net Income/Shareholder's Equity) where: ROE=Return on Equity DPR=Diviend Payout Rate |
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EBIT (Operating Income)
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Gross Margin - Operating Cost - Interest Expense
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Herfindahl Index (Formula)
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Stock and Bond Issue Affect on Balance Sheet, Net Income, and Equity Statements
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What is the Purpose of CFO, CFI, CFF
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Free Cash Flow (Formula)
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CFO - Net Capital Expenditures
Cash Flow After all expenses paid |
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Net Capital Expenditures (Formula)
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total capital expenditure - after-tax proceeds from sale of assets
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Free Cash Flow Yield (Formula)
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Free Cash Flow per Share/Price per Share
or (Free Cash Flow/Shares Outstanding)/Price per Share |
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Shareholder's Equity (Formula)
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Modified Duration
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Macually Duration/[1+(ΔYTM)]
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Margin Call (Formula)
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Required Equity - Current Value
where: Required Value=MV of Stock * Margin Rate |
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Reverse DDM
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Future Price(n)/[1+g(n)]^n
where: n=Number Periods, g(n)=Growth Rate at Future time N. Will return Current Price of today, given |
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Margin Call (Formula)
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Required Equity - Current Value
where: Required Value=MV of Stock * Margin Rate |
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Dividend per Share (Formula)
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(Sum of Dividends)/Number Shares Outstanding
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Reverse DDM
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Future Price(n)/[1+g(n)]^n
where: n=Number Periods, g(n)=Growth Rate at Future time N. Will return Current Price of today, given |
