Exam 2 Formulas revised

# Exam 2 Formulas revised - Formulas you should memorize for...

• Test Prep
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Formulas you should memorize for exam 2: Ch.7 Payout ratio = Dividends per share ( DPS ) Earnings per share ( EPS ) Retention Ratio = 1 – Payout Ratio Return on Equity (ROE) = Net Income / Shareholders’ Equity P/E ratio Earnings yield (E/P) P/CF ratio P/S ratio P/B ratio Ch.9 MSI = Number of Bearish Investors Number of Bullish Investors + Number of Bearish Investors Ch.10 Real interest rate = nominal interest rate – inflation rate Calculating forward rate

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TERM EXAM 2 FORMULAS PROVIDED Arithmetic average growth rate = 0 N D t + 1 D t D t N P 0 = D 0 × ( 1 + g ) k g = D 1 k g Index level = of stock pricesafter split Index divisor Current Price = Face Value
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