Recent Financial News
The name of the person described as Warren Buffet's right-hand man, who recently passed away
Who is Charlie Munger?
The financial statement where yearly amortisation and depreciation is reflected
What is Income Statement?
The difference between 10-Q and 10-K reports
What is 10-Q is released 3x a year for the first three quarters, 10-K is released with the last financial quarter and summarises the year?
The formula for Enterprise Value
What is market cap + total debt - cash?
The risk-free rate normally used in our DCFs
What is the 10Y US Treasury Yield?
The names of the Chancellor of the Exchequer of the UK and the Chair of the Federal Reserve
Who are Jeremy Hunt and Jerome Powell?
The reason that depreciation (a non-cash expense) affects the statement of cash flows
What is reducing the tax amount therefore saving the company a cash expense?
An explanation of hedging
What is a form of risk management designed to minimise loses by taking an opposite position in a comparable asset?
The difference between the quick and current ratio
What is less inventory?
The final calculation to reach the predicted share price in a DCF
What is equity value divided by number of shares?
One of the two weight-loss drugs that NovoNordisk created
What is Ozempic/Wegovy?
The difference between accounts receivable and deferred revenue
What is accounts receivable has not yet been collected in cash from customers whereas deferred revenue has?
The technical analysis pattern that predicts a bullish to bearish change, with an approximate 80% success rate
What is the head and shoulders pattern?
How we calculate Net Working Capital
What is Working Capital = Current Assets - Current Liabilities?
The formula for CAPM
What is risk free rate + beta * market risk premium (Expected Market Return - Risk free rate)?
The industry of the ETF that Michael Burry (of The Big Short fame) recently bought puts against
What is the semi conductor industry? (SOXX)
An explanation for goodwill
What is an overpayment of a firm's net assets at fair value during an acquisition? (Re-evaluated yearly)
One basic assumption of TA (compared to fundamental analysis) is ...
What is
(1) The market discounts everything?
(2) prices move in trends and countertrends?
(3) price action is repetitive, with certain patterns reoccurring?
(If you complain I got this from CFA Institute)
How we calculate interest coverage ratio?
What is EBIT divided by interest expense?
The formula for WACC
What is weighted equity * cost of equity + weighted debt * cost of debt * (1 - tax rate)?
E/V * Re + D/V * Rd * (1 - Tc)
The highest oil price per barrel reached in 2023 (must be within 3 dollars)
What is $93.89 a barrel?
2 examples of non-recurring charges to add back to a company's EBIT or EBITDA
What are restructuring charges, goodwill impairment, asset write-downs, bad debt expenses, legal expenses, disaster expenses?
The typical calculation to plot Bollinger Bands
What is 20DSMA +/- 2 standard deviations?
The formula for ROCE (Return on Capital Employed)
What is EBIT divided by capital employed?
(Capital employed = Total Assets - Current Liabilities)
The reason why you use Cost of Equity for levered free cash flow and not WACC
What is debt and preferred stock are not taken into account (calculating equity value not enterprise value)?