IFIC (UNIT 1 QUIZ) STUDY GUIDE
Net Asset Value Per Share/Unit (NAVPS/NAVPU) - Answers -Total Assets - Total
Liabilities ÷ Number of Shares/Units Outstanding
Earnings Per Common Share (EPS) - Answers -Net Profit - Preferred Dividends paid ÷
# of Common Shares Issued
Book Value per Common Share (BVPS) - Answers -Common Capital Stock + Retained
Earnings + Contributed Surplus ÷ Number of Common Shares Issued
Current Yield for A Bond - Answers -Annual Income ÷ Current Price of the Bond
Yield to Maturity - Answers -Annual Income +/- Annual Price Change ÷ Average of
Current Market Price and Maturity Price
Front - End Load - Answers -NAVPS ÷ 1 - Sales Charge (expressed as %)
Unemployment Rate - Answers -# of Unemployed Persons ÷ Labour Force
Consumer Price Index (CPI) - Answers -[(CPI current year - CPI past year) ÷ CPI past
year] x 100
Inflation Rate - Answers -Current Years CPI Value - Previous Year CPI Value ÷
Previous Year CPI Value
Management Expense Ratio (MER) - Answers -Total Annual Fund expenses per
income statement ÷ Average net asset value for the year
Sharpe Ratio (SP) - Answers -Return of Portfolio - Risk Free Rate ÷ Standard Deviation
(SD)
Working Capital Ratio (Current Ratio) - Answers -Current Assets ÷ Current Liabilities
Quick Ratio (Acid Test) - Answers -Current Assets - Inventories ÷ Current Liabilities
Price/Earnings (P/E) Ratio - Answers -Market price per share ÷ Earnings per share
Inventory Turnover Ratio - Answers -Cost of Sales ÷ Inventory= X
365 ÷ X
Debt - Equity Ratio - Answers -Total Debt ÷ Total Equity
Interest Coverage Ratio - Answers -Income before interest and taxes ÷ Total interest
expenses
Net Asset Value Per Share/Unit (NAVPS/NAVPU) - Answers -Total Assets - Total
Liabilities ÷ Number of Shares/Units Outstanding
Earnings Per Common Share (EPS) - Answers -Net Profit - Preferred Dividends paid ÷
# of Common Shares Issued
Book Value per Common Share (BVPS) - Answers -Common Capital Stock + Retained
Earnings + Contributed Surplus ÷ Number of Common Shares Issued
Current Yield for A Bond - Answers -Annual Income ÷ Current Price of the Bond
Yield to Maturity - Answers -Annual Income +/- Annual Price Change ÷ Average of
Current Market Price and Maturity Price
Front - End Load - Answers -NAVPS ÷ 1 - Sales Charge (expressed as %)
Unemployment Rate - Answers -# of Unemployed Persons ÷ Labour Force
Consumer Price Index (CPI) - Answers -[(CPI current year - CPI past year) ÷ CPI past
year] x 100
Inflation Rate - Answers -Current Years CPI Value - Previous Year CPI Value ÷
Previous Year CPI Value
Management Expense Ratio (MER) - Answers -Total Annual Fund expenses per
income statement ÷ Average net asset value for the year
Sharpe Ratio (SP) - Answers -Return of Portfolio - Risk Free Rate ÷ Standard Deviation
(SD)
Working Capital Ratio (Current Ratio) - Answers -Current Assets ÷ Current Liabilities
Quick Ratio (Acid Test) - Answers -Current Assets - Inventories ÷ Current Liabilities
Price/Earnings (P/E) Ratio - Answers -Market price per share ÷ Earnings per share
Inventory Turnover Ratio - Answers -Cost of Sales ÷ Inventory= X
365 ÷ X
Debt - Equity Ratio - Answers -Total Debt ÷ Total Equity
Interest Coverage Ratio - Answers -Income before interest and taxes ÷ Total interest
expenses