3
votes
3answers
700 views

How to calculate stock price (value) based on given values for equity and debt?

If a company has $80 million in equity and $20 million in debt, this means that total firm value = D + E = $100 million. Am I then right to assume that if there are 1 million shares outstanding, then ...
4
votes
2answers
258 views

How does the Dow Jones Industrial Average (DJIA) divisor change to account for dividends?

The DJIA is a price-weighted index tracking of 30 companies chosen by the Dow Jones Company. It takes the current share price of these 30 stocks and divides by a specific number called the divisor. ...
5
votes
2answers
159 views

Correct calculation for determining real business book value per share?

I'm trying to calculate the real value of a business and, as an example, I picked Netflix. From their latest financial statements I can see that: Assets value is: $3,065,709,000 Liabilities value ...
0
votes
2answers
623 views

How to determine duration of a common stock whose dividends grow in perpetuity?

What is the duration of a common stock whose dividends are expected to grow at a constant rate in perpetuity? Specifically, how can I compute this, since the dividends will grow forever? Update: ...
0
votes
2answers
128 views

How many stocks will I own in n years if I reinvest my dividends?

Let's say that I own 1000 shares of a stock at 20$. Every quarter, I get a dividend of 0.20$ which is reinvested (buy more of the same stock). Considering that the stock grows 5% annually, how many ...
1
vote
4answers
346 views

How do I calculate a simple moving average for stock prices?

To give a little context, this is for a programming assignment at school so the simplest form of proper moving average is all that's needed. I've searched around and seen the summation formulas and ...
2
votes
3answers
353 views

Discussing stock and stock index movement: clarifying percentage vs. points?

I'm trying to understand more about financial terminology used in news reports, but I'm having a hard time understanding what is meant when someone says the following: "NASDAQ was down X points today ...
3
votes
3answers
574 views

How to calculate the rate of return on selling a stock?

How to calculate the rate of return on selling a stock?