ECON 256 Formulas + Ppl
Scott Gladstone
Black Rock Associate, Financial Modeling group at blackrock
Kenneth Griffin
CEO of hedgefund citadel
Jerome Powell
Chairman of the Federal Reserve
Sarah Coulum
Citadel
Unlevered FCF
EBIT * (1 - Tax Rate) + Non-Cash Charges +/- Change in working capital - CapEx
Enterprise Value
EV = MCAP + Net Debt net debt = debt - cash
DCF EV using exit multiple method
EV0 = (sum of TVs of next 5yrs FCF) + (EDITDA multiple 5 x EBITDA 5/ (1 + WACC)^5)
DCF EV using Perpetuity Growth Method
EV0 = (sum of TVs of next 5yrs FCF) + FCF5(1+g)/(r-g)* 1/(1+WACC)^5
Christine Lagarde
European Central Bank (ECB) President
Central Banks Big Four
FED, ECB (European central bank), BOE (Bank of England), BOJ (bank of Japan)
Sam Bankman-Fried (SBF)
FTX founder - fraud
Present Value
FVt/(1+r)^t
Perpetuity Growth Method
Final yr FCF x (1+g) / (r-g) g= terminal growth rate r= discount rate
Changpeng Zhao, or CZ
Founder of Binance, stepped down after pleading guilty to money laundering violations
Andrew Bailey
Governor of the Bank of England
Joe Zirpolo
Head of Training Houlihan Lowkey
IRR
Internal rate of return (IRR) is a discount rate at which the net present value (NPV) of an investment is equal to zero. If the IRR is higher than the cost of borrowing to fund the investment, the investment should be profitable.
Equity Value
Number of shares * Share price
Future Value
PV(1+r)^t
Josh Abrams
Peak6
Rishi Sunak
Prime Minister of the United Kingdom
CAPM
Re = Rf + Beta(Rm-Rf). Re = return on equity Rf= riskless rate Rm- Rf = excess return on mkt/ how much stock mkt is expected to outperform bonds ***CAPM used to calc cost of equity over LONG period of time
Mike Johnson
U.S. House of Representatives Speaker
Damian Williams
US attorney general who tried SBF
WACC
WACC = (Re * (E/(D+E)) + (Rd * (1-t) * (D/(D+E) E= MCAP D= Companys debt Re= return on equity Rd= return on debt t= tax rate
Congress passed a bill this week to avert a government shutdown. Which two are true of the bill? a) House Speaker Mike Johnson supported it. b) it cuts funding to the I.R.S. c) It includes money for Ukraine and Israel. d) It extends government funding through 2025. e) More House Democrats voted for it than House Republicans.
a) and e)
After three weeks of infighting and dysfunction, Republicans elected Representative Mike Johnson of Louisiana as the 56th speaker of the House. Which of the following is Not True about Mr. Johnson? a) elected to the house in 2002, he is one of the most senior lawmakers in decades to become speaker. b) he is second in line to the presidency. c) he opposes abortion rights and same sex marriage. d) he played a leading role in congressional efforts to overturn the 2020 election.
a) elected to the house in 2002, he is one of the most senior lawmakers in decades to become speaker he's actually one of the most junior law makers in decades
Sam Bankman-Fried was found guilty of seven counts of fraud and conspiracy. What has the case come to symbolize? a) the dangers of rushing into the subprime mortgage housing market b) the excesses of the volatile cryptocurrency industry c) the new reality of failing retail sales and changing shopping habits d) the problems with deregulation in the energy market
b) the excesses of the volatile cryptocurrency industry
Dozens of States sued Meta for what? a) harassment of female employees at the company b) having a monopoly that keeps TikTok from competing c) making Facebook and instagram addictive for children d) leaking user data e) poor content moderation that is spreading disinformation about elections
c) making Facebook and instagram addictive for children
The Supreme Court this week adopted an ethics code for the justices after a series of revelations about undisclosed gifts. Who is assigned to enforce the code? a) the attorney general b) the house speaker c) no one d) Leonard Leo, a leader of the federalist society e) the president
c) no one!! the ethics code will operate eon the honor system
working capital
current assets - current liabilities
Alex Salcedo
p&g