Technicals
The minimum amount of times for a trend line to be touched to be considered 'valid'
What is 3?
The three basic financial statements
What is the income statement, balance sheet and statement of cash flows
This famous active investor recently encouraged McDonald's to improve its treatment of pigs
What is Carl Icahn?
The formula for ROA
What is net income divided by total assets
The final calculation to reach the predicted share price in a DCF
What is equity value over number of shares
One basic assumption of TA (compared to fundamental analysis) is ...
What is
(1) The market discounts everything, (2) prices move in trends and countertrends, and (3) price action is repetitive, with certain patterns reoccurring.
(If you complain I got this from CFA Institute)
The reason that depreciation (a non-cash expense) affects the statement of cash flows
What is reducing the tax amount therefore saving the company cash expense
This investment bank became the first to be investigated by Switzerland authorities
What is Credit Suisse?
The formula for the acid-test ratio
What is cash + marketable securities + accounts receivable divided by current liabilities
A way of calculating Cost of Equity without using CAPM (using dividends)
What is Cost of Equity = (Dividend per share / Share price) + Growth Rate of Dividends?
The typical calculation to plot Bollinger Bands
What is 20DSMA +/- 2 standard deviations?
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 name of Peloton's plan to cover up rust issues with their bikes
What is Operation Tinman?
The formula for ROCE
What is EBIT divided by total assets minus current liabilities
The elements changed to reach enterprise value from equity value
What is plus debt and minority interests (net debt) less cash
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.
The new replacement for the LIBOR (London Interbank Offered Rate)
What is the SONIA (Sterling Overnight Index Average)?
The calculation for interest coverage
What is EBIT divided by interest expense
The calculation for the debt portion of WACC
What is [debt market value /(sum of equity + debt market value)] * cost of debt * (1 - tax rate)?
AKA (D/V) * Rd * (1 - Tc)
The calculation for MACD
What is subtracting the 26-period exponential moving average (EMA) from the 12-period exponential moving average?
Restructuring charges, goodwill impairment, asset write-downs, bad debt expenses, legal expenses, disaster expenses
What are examples of non-recurring charges to add back to a company's EBIT/EBITDA
Name four of the seven companies (same sector) that recently announced a combined $38Bn share buy-back
What are Shell, Exxon Mobil, BP, Chevron, TotalEnergies, Eni and Equinor?
Dividend pay out ratio calculation
What is dividend per share divided by earning per share all multiplied by 100
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