Technicals
The upper and lower values of the RSI
What is 30 and 70.
The financial statement that lists assets and liabilities
What is the balance sheet
The company recently announced they would be acquiring Activision Blizzard for $69bn all cash
What is Microsoft.
This ratio considers how much you would pay for each dollar of the company's assets
What is the Price to Book ratio?
The final calculation in the DCF
What is equity value over number of shares
This technical analysis pattern occurs when a short-term moving average crosses above its long-term moving average
What is a golden cross?
Opening inventory + purchases - closing inventory
What is cost of goods sold
This major company recently reversed a decision to stop accepting Visa cards at checkout
What is Amazon
The PEG calculation
What is Price divided by Earnings Growth?
The additional premium that an investor requires for holding shares that are not risk free
What is equity risk premium
Often occurring in acquisitions, this term is where a company may overpay for intangible assets or discontinues operations
What is impaired goodwill?
This accounting principle sees revenue only recognised when the good/service is delivered
What is the matching principle?
This commodity recently returned to a price not seen since 2018
What is Brent crude oil?
The exit multiple
What is EV/EBITDA
The elements added to enterprise value to reach equity value
What is taking away debt, minority interests and adding cash and other equivalents.
The technical analysis pattern that predicts a bullish to bearish change, with an approximate 80% success rate
What is head and shoulders?
The effect on the three primary statements of a $10 increase in depreciation?
What is profit increasing by $10 on the P&L, cash flow increasing by $10 on the statement of cash flows and a $10 reduction in asset value.
This currency pair recently returned to levels not seen since 2016
What is the USD/GBP?
The difference between the quick and current ratios
What is the current assets / current liabilities and current assets (less cash) / current liabilities?
The calculation for WACC
What is the percentage of equity * cost of equity plus the percentage of debt * cost of debt * one minus tax
The calculation for MACD
Restructuring charges, goodwill impairment, asset write-downs, bad debt expenses, legal expenses, disaster expenses
What is examples of non-recurring charges to add back to a company's EBIT/EBITDA
This country recently announced it would be cutting interest rates despite increasing inflation
What is Turkey?
Dividend pay out ratio calculation
What is dividend per share divided by earning per share all multiplied by 100
The discount rate one would use for Levered Free Cash Flow and why
What is cost of equity instead of WACC as debt and preferred stock are not taken into account