Appendix

Important Figures and Formulas

You can't bring your notes (or this Appendix) into the exam center, so be sure to squirrel the following info away in your brain and write it on the scrap paper provided after the test begins.

Adjust for stock splits (Chapter 6)

math
math

Determine the outstanding shares (Chapter 6)

math

Rights formula (Chapter 6)

math

Ex-rights formula (Chapter 6)

math

Calculate the current yield of a stock or bond (Chapter 7)

math

Calculate the conversion ratio of a convertible preferred stock or convertible bond (Chapter 7)

math

Bond seesaw (Chapter 7)

Diagram depicting that if a bond is at par, the seesaw remains level. If the prices decrease, the yields increase, and if the prices increase, the yields decrease.

© John Wiley & Sons, Inc.

Calculate the taxable equivalent yield of a municipal bond (Chapter 8)

math

Long margin account formula (Chapter 9)

math

Short margin account formula (Chapter 9)

math

Calculating the buying or shorting power (Chapter 9)

math

Calculate the sales charge % of a mutual fund (Chapter 10)

math

Calculate the public offering price of a mutual fund (Chapter 10)

math

Options chart (Chapter 12)

A basic template of an options chart displaying the Money Out and Money In sides of the chart.

Calculate the time value of an option (Chapter 12)

math

Balance sheet formula (Chapter 13)

math

Calculate working capital (Chapter 13)

math

Net worth (Chapter 13)

math

Price/earnings (P/E) ratio formula (Chapter 13)

math
..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset