Created
March 7, 2014 08:48
-
-
Save dmastylo/9407884 to your computer and use it in GitHub Desktop.
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
Po = D / (1 + required return) + P1 / (1 + required return) | |
Po = D * (1 + constant growth) / (required return - constant growth) | |
EM = 1 / ratio of ROE to ROA | |
ROE = ROA * EM | |
req reserve + excess res + loans + t bill = deposits + capital | |
req reserve = deposit * ratio | |
gap analysis => i rate * (rate sensitive assets - rate sensitive liability) | |
raise in interest ^ asset return, V liability | |
^ money supply, ^ stock price, do not buy | |
investors acting on best info in 90's -> 2001 bubble | |
cash flow in stock: dividends, capital gains |
Sign up for free
to join this conversation on GitHub.
Already have an account?
Sign in to comment