Series 65- Formulas
Acid test(quick ratio)
Current assets -inventory/current liabilities
Working capital
Current assets-current liabities
Current ratio
Current assets/current liabities
Price to earnings ration P/E ratio
Current market price of common share/EPS
Earnings per share (EPS) Security
Current market price of common stock/ PE ratio
Debt to equity ratio
Debt/ equity
Earnings per share(EPS) Company
Earnings available to common/number of shares outstanding
Tax equivalent yield
Muni rate/ (100%- tax bracket)
Market capitalization
Number or outstanding shares x common share price
Conversion ratio
Par value/conversion price
Number of shares
Par value/conversion price
Yield to Maturity
(Annual income + annual capital gain)/average bond value
Book value per share
(Tangible assets-liabilities-par value of preferred)/shares of common stock outstanding
Alpha
(Total portfolio return-risk free rate) - (portfolio beta x (market return-risk free rate))
Rule 72
72/# of years = iinterest rate required to double Interest rate/72= number of years required to double
Tax free equivalent yield
Corporate rate x (100%-tax bracket)
Current yield
Annual dividend/market value
Dividend payout ratio
Annual dividends per share/ EPS
Net worth Shareholders equity Owners equity
Assets-liabilities
Return on Investment
Average cash flow/original investment amount
Risk premium
Beta (expected market return- risk free rate)
Parity
Bond market value/number of shares
Gross margin percentage
Gross margin/sales
Outstanding stock of a company
Issued stock - treasury stock
Assets
Liabities + net worth
Equity
Long market value- debit balance Credit balance- short market value
Sharpe ratio
Rate of return risk free rate of return/standard deviation
Risk adjusted return
Return/beta
Expected return on investment
Risk free rate of return + risk premium
Gross Margin
Sales-cost of goods sold
Real Return
Total return/CPI