All essential formulas for the Series 65 exam in one printable reference
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Master these 16 formulas and you will handle any calculation question on the exam. Print this sheet and keep it handy during your study sessions.
Most commonly tested: Current Yield, NAV, P/E Ratio, and Current Ratio
| Formula Name | Formula | Example | When to Use |
|---|---|---|---|
| Current Yield | Annual Interest Payment ÷ Current Market Price | $50 ÷ $1,000 = 5% | Comparing bond income at current market prices |
| Yield to Maturity (Approximation) | (Annual Interest + ((Par − Price) ÷ Years)) ÷ ((Par + Price) ÷ 2) | ($50 + (($1,000 − $950) ÷ 10)) ÷ (($1,000 + $950) ÷ 2) = 5.64% | Total return if bond held to maturity |
| Yield to Call | (Annual Interest + ((Call Price − Current Price) ÷ Years to Call)) ÷ ((Call Price + Current Price) ÷ 2) | Calculate return if bond called early | When bond is likely to be called before maturity |
| Accrued Interest | (Annual Interest ÷ 360) × Days Since Last Payment | ($60 ÷ 360) × 90 = $15 | Calculating interest owed to seller in bond transaction |
| Formula Name | Formula | Example | When to Use |
|---|---|---|---|
| P/E Ratio | Stock Price ÷ Earnings Per Share | $50 ÷ $2.50 = 20 | Valuing stocks relative to earnings |
| Dividend Yield | Annual Dividend ÷ Stock Price | $2.00 ÷ $50 = 4% | Comparing income from dividend-paying stocks |
| Earnings Per Share (EPS) | Net Income ÷ Shares Outstanding | $10,000,000 ÷ 4,000,000 = $2.50 | Measuring company profitability per share |
| Formula Name | Formula | Example | When to Use |
|---|---|---|---|
| Current Ratio | Current Assets ÷ Current Liabilities | $500,000 ÷ $250,000 = 2.0 | Assessing short-term liquidity |
| Quick Ratio (Acid Test) | (Current Assets − Inventory) ÷ Current Liabilities | ($500,000 − $100,000) ÷ $250,000 = 1.6 | Stricter measure of liquidity (excludes inventory) |
| Debt-to-Equity Ratio | Total Debt ÷ Total Equity | $2,000,000 ÷ $5,000,000 = 0.4 | Measuring financial leverage |
| Working Capital | Current Assets − Current Liabilities | $500,000 − $250,000 = $250,000 | Measuring operational liquidity in dollar terms |
| Formula Name | Formula | Example | When to Use |
|---|---|---|---|
| Call Option Breakeven | Strike Price + Premium Paid | $50 + $3 = $53 | Determining breakeven point for call buyers |
| Put Option Breakeven | Strike Price − Premium Paid | $50 − $3 = $47 | Determining breakeven point for put buyers |
| Formula Name | Formula | Example | When to Use |
|---|---|---|---|
| NAV (Net Asset Value) | (Total Assets − Liabilities) ÷ Shares Outstanding | ($10,000,000 − $500,000) ÷ 500,000 = $19.00 | Determining mutual fund share price |
| Tax-Equivalent Yield | Municipal Bond Yield ÷ (1 − Marginal Tax Rate) | 3% ÷ (1 − 0.32) = 4.41% | Comparing tax-free municipal bonds to taxable bonds |
| Real Rate of Return | Nominal Return − Inflation Rate | 8% − 3% = 5% | Adjusting returns for purchasing power |
Bond prices move inversely to interest rates
Short-term capital gains taxed as ordinary income
Always round at the final step only
Division symbol (÷) shows the denominator clearly
Use this formula sheet alongside our comprehensive study guide for complete exam preparation