Series 7 Fromulas
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| Used to meet emergencies but not for expansion of plant facilities or other major expenditures | Net Working Capital Formula =
Current Assets-Current Liabilities
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| Increased by Tax loss Carried Forward Reduction of corporate income tax rates Retirement of Outstanding Bonds | EPS=
Net Earnings / Outstanding Common Shares
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| EPS is affected by? | Changes in a company inventory valuations
Acquisitions and dispositions of other companies and Subsidiary (Spin Off)
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| Fully diluted earnings Per Share | Calculated assuming all potential dilutions occur from convertible bonds, stock, PFD Stock and Warrants
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| Current Ratio (Standard Minimum is 2:1) Describes Liquidity, not profitability, coverage or debt) | Current Assets / Current Liabilities
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| Determine the outstanding shares | Outstanding shares = Issued Shares – Treasury stock
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| Acid Test (Quick Ratio) Standard Min 1:1 Most Stringent Measure of Corporate liquidity | Acid Test (Quick Ratio)= Current Assets- Inventory / Current Liabilities
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| Interest Coverage (Fixed Charge Coverage) Coverage should be or 7 times over expenses | Interest Coverage= Operating Profit / Interest Expense
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| Debt to Equity Ratio (Used to determine if company is Conservative or Speculative) | Debt to Equity Ratio= Total Debt/ Net Worth
(Same as Share Holders Equity, Measure of Financial Leverage, used in analysis of the financial structure of a company)
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| Margin Profit | Margin Profit = Operating Profit / Net Sales
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| Cash Flow | Cash Flow= Net Income + Depreciation
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| Referred to as ''Multiple at Which Stock Is Selling" Ration does not Change when Stock Split Occurs | P/E Ratio =Market Price / Earnings Per Share
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| Book Value / Liquidating Value/ Net Tangible Asset Per Share | Book Value =
Share Holders Equity- PFD Stock /Outstanding Common Shares
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| Capitalization or Total Capital | Total Capital= Share Holders Equity + Bonds
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| Bond Ratio | Stated Value of Bonds / Capitalization
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| Common Stock Ratio | Value of Common +Paid In Surplus+Retained Earnings / Capitalization
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| PFD Stock Ratio | Stated Value of PFD/ Capitalization
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| Return on Assets | Net Income ( Net Profit After Tax) / Total Tangible Assets
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| Basic Balance Sheet Equation? | Total Assets = Total Liabilities + Net Worth
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| Return on Equity | Net Income / Share Holders Equity
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| Total Return | Growth + Income
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| Long margin account formula | Long market value (LMV) – debit record (DR) = equity (EQ
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| Short margin account formula | Short market value (SMV) + equity (EQ) = credit record (CR)
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| Calculate the time value of an option | Premium (P) = intrinsic value (I) + time value (T)
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| Balance sheet formula | Assets = liabilities + stockholder’s equity
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| Calculate working capital | Working capital = current assets – current liabilities
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| Cease Trading For Options | 4:02 PM on the business day prior to expiration
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| Exercise Cut Off time for Options | 5:30 PM EST on the business day prior to expiration
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| Expiration Day For options | 11:59 PM EST on the Saturday following the third Friday of the month
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| Sub Chapter S Corporation | 100 or less Shares holders , One class of stock, Aliens & other corporations are prohibited from participating
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| Registrar | Make sure the amount of shares outstanding does not exceed the number of shares authorized by the firm’s corporate charter.
Determines which shareholders are paid a cash or stock dividend
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| Current Yield | Annual Dividend / Market Price
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| DPS | Dividends Paid to Common Share Holders / Outstanding Shares
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| Mutual Fund Pricing | NET ASSET VALUE + SALES LOAD = P O Price
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| Offering Price | NAV/100%-Sales Load
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| Sales Load % | (OP- NAV) /OP
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