Technical
What is the formula for CAPM and what is it conceptually
Cost of Equity = Risk-Free Rate + Beta * Equity Risk Premium
Return equity investors expect
the target fed funds rate range as of 4/29/24
5.25-5.5%
2 current members of MEF who are color blind
Aidan & CJ
Describe the difference between the price and interest rate of a bond
inverse
When was MEF founded
2008
Assuming a 30% tax rate, walk me through 3 statements with a: $120 decrease in depreciation
Starting on the IS... Pre-tax income up $120, NI up 84 Moving onto the SCF... NI up 84, back out depreciation as non-cash, net change in cash is down 36 Finally, on the BS... A: Assets up 84; Cash down 36, PP&E up 120 L: No Change SE: Shareholder's Equity up 84; NI up by 84 ...and the Balance Sheet balances
Real GDP growth in 1Q24
1.6%
This popular Finance meme page follows Marie on Instagram
Slut4Banking
Explain the difference rate between coupon rate and yield
coupon rate = annual payment / par
Yield = total return of the bond
When was mfif founded
2014
Walk me through a DCF
1. Project a company's Free Cash Flows over a 5-10 year period. 2. Calculate the company's Discount Rate, usually using WACC (Weighted Average Cost of Capital). 3. Discount and sum up the company's Free Cash Flows. 4. Calculate the company's Terminal Value. 5. Discount the Terminal Value to its Present Value. 6. Add the discounted Free Cash Flows to the discounted Terminal Value."
The US recently opened a probe 130,000 vehicles made by this manufacturer over the safety of its hands free tech
Ford
Which 2 MEF alumni who graduated in the same year from UMass also graduated from the same high school the same year, need first and last name (underclassmen answer only)
Chris Caputo & Isaac Piliavin (Milton)
Roughly how many times bigger is the global FI market compared to the global equity market
roughly 3x
- Pimco
What year did world war 2 begin and end
1939 - 1945
When you're calculating WACC, let's say that the company has convertible debt. Do you count this as debt when calculating Enterprise Value for the company?
Trick question: If the convertible bond is in-the-money then you do not count it as debt but instead assume that it contributes to dilution, so the company's Equity Value is higher. If it's out-of-the money then you count it as debt and use the interest rate on the convertible for Cost of Debt.
The Japanese yen weakened to this amount against the U.S. dollar in Monday morning trading in Asia
160
What is Mike Pietrinis twin brothers name and where did he go to high school.
Chris Pietrini and Saint Johns Prep
Explain the concept of duration
Duration = sensitivity of price of bond relative to interest rates (duration of 2 means ~2% price decline in bond price per 1% increase in rates) - first derivative of price/rate function
What is the price of gold?
$2,250 - $2,450 ($2,354)
Why do deferred tax liabilities (DTLs) and deferred tax assets (DTAs) get created in M&A deals?
These get created when you write up assets - both tangible and intangible - and when you write down assets in a transaction. An asset write-up creates a deferred tax liability, and an asset write-down creates a deferred tax asset. You write down and write up assets because their book value - what's on the balance sheet - often differs substantially from their "fair market value." An asset write-up creates a deferred tax liability because you'll have a higher depreciation expense on the new asset, which means you save on taxes in the short-term - but eventually you'll have to pay them back, hence the liability. The opposite applies for an asset write-down and a deferred tax asset.
US Retail sales jumped by this amount in march compared to February which was also much higher then expected
0.7%
What is the current AUM of the fund (+- $2,000)
$410K
Explain some features of a callable bond
Which US president coined the "big stick" theory
Theodore Roosevelt