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# Series 7 Formulas

### Formulas

Term | Definition |
---|---|

How to Calculate Syndicate Spread | Public Offering Price - Price Paid to Issuer ($12 - $10 = $2) |

How to Calculate Syndicate Takedown | Spread - Management Fee ($2 - $.20 = $1.80) |

How to Calculate Additional Takedown | Takedown - Concession ($1.80 - $.50 = $1.30) |

Issued Stock | Treasury Stock + Oustanding Stock |

Value of a Right | (market price-subscription price/(number of rights to purchase one share + 1) |

Current Yield | Annual Interest / Market Price |

Conversion Ratio | Par Value / Conversion Price |

Per Capita Debt | (net.direct debt + overlapping debt) / municipality population |

Debt Service Coverage Ratio | (net revenue /principal) + interest |

Accrued Interest | Principal x Rate x Time |

Average Cost Per Share | Total dollars invested / shares bought |

Net Asset Value (NAV) | Value of funds assets/ outstanding shares |

Public Offering Price (POP) | Net Asset Value + Broker's Commission |

Sales Charge (%) | (POP - NAV) / POP |

Time Value | Premium - Instrinsic Value |

Calculate Break-Even Point for buying a call: Break-Even point | Strike Price + Premium |

Calculate Break-Even Point for selling a call: Break-Even Point | Strike Price - Premium |

Calculate Break-Even Point for buying a put: Break-even Point | Strike Price - Premium |

Calculate Break-Even for selling a put: Break-Even | Strike Price - Premium |

Net Working Capital (or Net Worth) | Asset - Liabilities |

Liquidity Ratio Formula: Current Ratio | Current Assets / Current Liabilities |

Liquidity Ratio Formula: Quick Asset Ration | (current assets-inventory) / current liabilities |

Liquidity Ratio Formula: Acid Test Ration | (cash+marketable securities) / current liabilities |

Capitalization Ratio Formula: Long-Term Capital | long-term liabilites + stockholder's equity |

Capitalization Ratio Formula: Bond Ratio | Bonds Par Value / Long-Term Capital |

Capitalization Ratio Formula: Debt-to-Equity | (bonds + preferred stock) / equity |

Operating Profit Margin | Operating Income / Net Sales |

Net Profit Ratio | Net Income / Net Sales |

Net Asset Value Per Bond | Net Worth / Bonds Sharing Outstanding |

Bond Interest Coverage | EBT / bond shares outstanding |

Book Value Per Share | (Assets - Liabilities) / bond shrs outstanding |

Earnings per common shrs (EPS) | (Net Worth - Preferred stock) / common shrs outstanding |

Price - Earnings Ratio (P/E) | Market Price / Earnings Per Share |

Dividend Payout Ration | Common Dividend / Earnings per Share |

CAPT Principal Formula: r = rf + b | r = return of stock rf = risk-free rate of T-Bills B = Beta value of stock |

Calculate Equity for long margin acct: Equity (EQ) | Long Market Value (LMV) - Debit Balance (DR) |

Calculate Equity for short margin acct: Equity (EQ) | Purchase Price - SMV + Margin Call |

Calculate Credit for short margin acct: Credit (CR) | SMV + margin call |

SMA | EQ - Margin Requirement |

Buying Power | SMA / Reg. T |

Calculate Restriction for Long Margin Acct: Restriction | Margin Call - EQ |

Calculate Restriction for Short Margin Acct: Restriction | Margin Call - EQ |

Calculate Maintenance for Long Margin Acct: Maintenance Call | Maintenance EQ - EQ |

Calculate Maintenance for Short Margin Acct: Maintenance Call | Maintenance EQ - EQ |