Capital Gains
Rules:
Under 12 month then you pay your current tax rate.
Long-term capital gains tax rate:
05% over 12 months tax bracket equal to or less than15%
15% over 12 months tax bracket greate
Class Work Three
Dow Example
Formula
DJIA= Sum of Closing Share Prices / DJIA Current Divisor
Company
Stock Price
ALCOA INC
28.77
GENERAL MOTORS
45.55
GENERAL ELEC CO
28.31
JP MORGAN CHASE
27.79
JOHNS
Investment
Cost (PV)
Payoff (FV)
Number of Years
IRR
Cash Flow
-$1,000
$1,400
5
6.96%
IRR FOR A SINGLE CASH FLOW
Investment
Cash Flow
Cost (PV)
-$1,000
Payoff (FV)
$2,000
Number of Years
6
IRR
12.25%
Class work Chapter 2 Short Sells and Margin
A round lot is 100 shares of stock, assume one lot.
For each of the following situations
Calculate Profit or Loss (no commissions)
You sell short at
You tak
Class Work Three
Dow Example
Formula
DJIA= Sum of Closing Share Prices / DJIA Current Divisor
Company
Stock Price
ALCOA INC
28.77
GENERAL MOTORS
45.55
GENERAL ELEC CO
28.31
JP MORGAN CHASE
27.79
JOHNS
You have placed a Market Order to buy 100 shares of Astro Technology.
Does your order execute? at what price?
At the time your order is entered the stock price is 42.25. Yes, at a price close to 42.25
You have placed a Market Order to buy 100 shares of Astro Technology, the stock is
currently selling for $41.
Does your order execute? at what price?
If the stock price moves to 42.25?
If the stock pr
Capital Gains
Rules:
Under 12 month then you pay your current tax rate.
Long-term capital gains tax rate:
05% over 12 months tax bracket equal to or less than15%
15% over 12 months tax bracket greate
NET ASSET VALUE
NET ASSET VALUE
Funds Assets / Outstanding Shares = NAV
Funds Assets / Outstanding Shares = NAV
Stock
Shares
Cur Value Total $
TFD
100
$11.08
ASX
125
$15.00
XC
300
$11.00
VTY
122
$23.0
Company Name
Market Price of Common Stock (Stock Price)
Revenue (Sales)
Cost of Goods Sold
Gross Profit
SG&A Expense
Depreciation + amortization
Operating Income (EBIT) Earnings before
interest and ta
Stock Basic Calculation from Chapter 6
Book value = total assets- total debt- preferred
Stock
Revenue Per Share
Sales / Outstanding shares
Total assets Total Debt
Sales
$54,546
$52,846
$54,458
$49,758
Capital Gains
Rules:
Under 12 month then you pay your current tax rate.
Long-term capital gains tax rate:
05% over 12 months tax bracket equal to or less than15%
15% over 12 months tax bracket greate
Class work Chapter 2 Short Sells and Margin
A round lot is 100 shares of stock, assume one lot.
For each of the following situations
Calculate Profit or Loss (no commissions)
You sell short at
You tak
Standard Deviation and Coefficient of Variation
Risk + Historical Returns Questions?
A. on the basis of review which stock appears
more risky? Why?
B. Calculate the Standard Deviation and
coefficient
Class Work Three
Dow Example
Formula
DJIA= Sum of Closing Share Prices / DJIA Current Divisor
Company
Stock Price
Company
Stock Price
ALCOA INC
28.77
GENERAL MOTORS
45.55
GENERAL ELEC CO
28.31
JP MORG
Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy reco
Heres what you find: This year, Oasis paid its stockholders an annual div
Open Buying a Call Stock Option
Number
of Contracts
1
Intrinsic Value
Time Value
Cost
Strike
Price
36
Stock
Call
Price
Premium
35
1.25
0
125
125
Number
of Contracts
1
Intrinsic Value
Time Value
Cost
C
Risk + Historical Returns examples
EX. One
Year
1
2
3
4
5
Average
Stock A
Stock B
Rate of Return
19%
8%
1%
10%
10%
12%
26%
14%
4%
16%
12.00%
12.00%
EX. Two
Year
1
2
3
4
5
Average
Stock A
Stock B
Rate
Calculating Return including Foreign currency effect Chapter 6
Calculating Return %
(Ending Value + Dividends / Beginning Value ) - 1
Company Beg Value End Value Dividend % Return
IBM
$80.00
$87.00
$1
Class Work Three
Dow Example
Formula
DJIA= Sum of Closing Share Prices / DJIA Current Divisor
Company
Stock Price
ALCOA INC
GENERAL ELEC CO
JOHNSON&JOHNSON
MICROSOFT CP
AMER EXPRESS CO
Total Share Pri
Liquidity Ratios
Current ratio
Current Assets / Current Liabilities
Hints
Net Income = Net Profits
Revenue = Sales
Net Working Capital
NWC = Current Assets - Current Liabilites
Activity Ratios
Account
McDonald's Corporation
Primary Industry: Fast Food & Quick Service Restaurants
Stock Price
42.46
34
Annual Income Statement (All dollar amounts in millions except per share amounts)
Revenue
Cost of Go
Company Name
McDonald's
Wendy's
YUM!
Market Price (Stock Price)
Revenue (Sales)
Cost of Goods Sold
Gross Profit
SG&A Expense
Depreciation + amortization
Operating Income (EBIT)
Tax Rate (TR)
Market Va
Key Numbers
Annual Sales ($ mil.)
Employees
Market Cap ($ mil.)
Profitability
Gross Profit Margin
Pre-Tax Profit Margin
Net Profit Margin
Return on Equity
Return on Assets
Return on Invested Capital
V
Naked Put Writing
Naked Put Writing
Current market price of the stock
$80.00
Current market price of the stock
$50.00
Current Premium price of the Put
$4.00
Current Premium price of the Put
$3.50
STRI
Open Buying a Call Stock Option
Number
of Contracts
Strike
Price
1
Intrinsic Value
Time Value
Cost
36
Stock
Call
Price
Premium
35
1.25
0
1.25
125
Number
of Contracts
Strike
Price
1
Intrinsic Value
Tim