The Core Calculation: Beyond Sale Price Minus Basis Calculating capital gains tax starts with one formula: taxable gain = net sale proceeds − adjusted basis. But the rate you actually pay is never that simple. You must layer on holding…
Short-Term vs Long-Term Capital Gains: Which Is Better? The blunt answer to short term vs long term capital gains which is better is: long-term is usually better for the IRS bill, but short-term can be better for your wallet when…
The Quick Answer: How to Calculate Dividend Yield If you want to know how to calculate dividend yield, the textbook formula is annual dividends per share divided by the current share price, multiplied by 100 to express it as a…
The Core Formula: How to Calculate REIT Distribution Yield To calculate a REIT distribution yield, divide the trailing 12-month distributions per share by the current share price (or NAV for a true underlying yield) and multiply by 100. The precise…
The Straight Answer: Managed Fund vs ETF Which Costs Less? If you’re asking managed fund vs ETF which costs less, the honest reply is: it depends on how you contribute and how long you hold. For a $100,000 lump sum…
How to Calculate Expense Ratio in Plain Terms The core math for how to calculate expense ratio is straightforward: divide a fund’s total annual operating expenses by its average net assets, then multiply by 100 to express it as a…
The 60-Second Answer: How to Calculate EBIT (and What Most Guides Get Wrong) If you want to know how to calculate EBIT, the shortest correct answer is: EBIT equals earnings before interest and taxes. Practically, you can derive it two…
How to Calculate EPS Growth: The Core Formula and Why Annual Rates Matter If you want to know how to calculate EPS growth, start with the earnings per share (EPS) figure itself. The formula for calculating EPS is net income…
The Core Formula for Calculating Enterprise Value If you take away one thing from this guide, it’s this: the formula for calculating EV is market capitalization plus total debt, minus cash and equivalents, plus preferred equity and minority interest. For…
How to Calculate Risk Premium: The Practitioner’s Short Answer To calculate risk premium, subtract the risk-free rate from the expected return of a risky asset. For the broad market, the S&P 500 risk premium equals the index’s expected return minus…