fin investments cheat sheet

fin investments cheat sheet - Q uoted B I D PR ICE

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Unformatted text preview: Q uoted B I D PR ICE 996.25(100/1000)=99.625=99+(.625*32/32)=99_(20/32)=99:20 Rverse 102:12=(102+12/32)*(1000/100)=1023.75 Taxable equivalent yield for municipal bond yields R=[r(m/m)]/(1-28%) After tax retu rn to corporate investor after 70% exclusion: P re-tax rate of retu rn-(pretax r r *.30)*tax bracket After tax retu rn to individual investor: P retax r r *(1-tax bracket) After tax yield: % bond yield(1-ma rginal tax rate) P r ice-wieghted index: add up stock p rices nd divide by the # companies Value weighted index: Explicit Cost of I PO: 7% M ax Gain=proceeds(stock p rice*number of shares)-min possible r eplacement cost(stock p rice*0) M a rgin Call: Pu rchase(If stock drops below)=pr ice per share*[(1-initial margin)/ (1-maintenance margin)] Sell(short-sell)=[price per share+margin required(pr ice per share)]/ (1+maintenance ma rgin) I nvestors Rate of retu rn: Commision: commission on stock purchase+(# of round lots in 100s*commission per share) NAV(net asset value)=(assets-liabilities)/shares Low load mutual funds front end loads of no more than 3% Rate of Retu rn of a Fund 1.Find NAV for year 0 2.Find NAV for yr 1: assets-assets(total expense ratio)liabilities/shares 3.Gross Retu rn: [NAV1-NAV0+(income distribution+capital gains d istr ibutions per share)]/NAV0 Funds tu rnover: assets bought nd sold over time/total assets o utstanding D ividends Yield: 1.P rice per share= (assets-liabilities)/shares 2.Dividends yield=dividends/price per share M in annual ra te of retu rn(fund) r> retu rn from bank+annual espense ratio+annual 12b-1 fee H P R: I nvestment growth rate+(dividends/initial capital for i nvestment) Annual percentage Rate of retu rn on T-bill [(par value-amount paid)/amount paid](12/amount of months to m atu rity) ...
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fin investments cheat sheet - Q uoted B I D PR ICE

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