"... when you can measure what you are speaking about, and express it in numbers, you know something about it;"
 Lord Kelvin, 1883
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Appendix 1

Appendix 2
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Guide to Terms and Calculations
Lord Kelvin 18241907 Image: Messrs. Dickinson London, New Bond Street 
Find explanations of some additional terms in Part 2.
For additional readings, see the sources list in Part 1.
Assets: All the company’s money, amounts loaned to or invested in others, property, supplies and materials on hand, funds set aside to pay future employee benefits, tax refunds expected but not yet received, and amounts billed to customers but not yet paid.
Bond: A debt owed by a company or government and divided into many uniform shares called “bonds”, having a maturity value (a.k.a. face value) to be paid at a future “maturity” date. Most bonds pay interest, a stated percent of maturity value, though some pay no interest. Some bonds are traded on securities exchanges.
Book value (a.k.a. Equity or Stockholder’s Equity): Assets minus liabilities. For a stock, see the company’s balance sheet, published annually. For stock ETFs for the long term beach investor (see Part 1), book value is the sum of the book values of the stocks held in the ETF, and the ETF has no significant liabilities (ETFs that have significant liabilities are called “leveraged” ETFs, and if you are wary of risk, then know that leveraged funds are playing with fire.).
Book Value Divided by Price: Your broker’s website will probably show the price per share divided by book value per share, or maybe they will show a blank or “N/A”. If the broker shows you price divided by book value, then calculate book value (b) divided by price (p) as
b/p = 1 / (price divided by book value).
b/p = book value divided by market cap
Positively Correlated. Image: Wikimedia, "Ordinary Least Squares", Public Domain 
Credibility: A weighted average of a useful, though not fully believable, measurement and a standard value, though general and nonspecific and less relevant, such as the average for all stocks. The credibility calculation allows us to compare a stock like TWTR, which began trading about 5 years ago, with a stock like MA which has been around for decades. If you think an 5yr price growth metric (g) is a more believable predictor than a 2yr price growth, but you would need a 10yr growth of price metric to believe it “completely” and compare it with other stocks, then we can base the weighting on the number of years available (y), divided by 10. Then we calculate the credibility (c) as
c = square root of the number of years available divided by 10
c = sqrt( y / 10 )
("sqrt()" is the spreadsheet software function for square root)
Example: TWTR has price history since 2014, so y=5, and then c=0.707.
Credibility weighted 10yr price growth = c * g + ( 1  c ) * s
Example: if TWTR, y=5, g=1.1, s=3.1, then c=0.707
and
credibilityweighted 10yr growth = 1.7.
Liabilities: Money owed to others, salaries and benefits owed to employees, advance payments from customers, amounts billed to those few customers that probably won’t pay (doubtful accounts), bills for purchases not yet paid, taxes not yet paid, and payments promised to lenders, stockholders and investors.
Market Capitalization (a.k.a. Market Cap or Capitalization): Generally, price multiplied by the number of shares outstanding. If a company has more than one kind of stock, then the market cap of the company (your probable topic of interest) is the sum of the market caps of the various kinds kind of stock.
Price: Unless otherwise indicated, these articles refer to the price of the last trade when the exchange closes for the day, the “closing price” or “last price” on a given day.
Rate of dividend increase (or decline) per share: I take the most recent five years of dividends reported by the company, summarize them by 12month periods, and apply exponential least squares regression to get the average annual rate of increase. NO, you don’t need to do that. All you need is some way to come up with an unambiguous, repeatable, generally applicable estimate of what rate of increase to expect in the future, so that you can compare one stock with another. If you don’t know exponential least squares regression, and you don’t feel like reading how to do it on Wikipedia https://en.wikipedia.org/wiki/Ordinary_least_squares, or asking a friend, there are satisfactory alternatives.
Here is one. Use the slope() function included with nearly all spreadsheet software. A stock with larger (steeper) slope number has dividends increasing faster.
s = slope of least squares line
= slope(y1:y5,x1:x5)
For more information, type “slope function” into your favorite search engine.
Here is a second. Divide the year 5 (most recent) dividend (d5) by the year 1 (earliest) dividend (d1), take the square root of that, then take the square root of that. That is, you can get an estimate of the future rate by either of the following two equivalent calculations.
Estimated rate = sqrt( sqrt( d5 / d1 ) ) = ( d5 / d1 ) ^ ( 1/4 )
Reinvestment of dividends: Using dividends you receive to buy additional shares of the investment that produced them. Many or most brokers will automatically reinvest dividends for you, at no charge, on your request.
Return: The amounts of money you get from an investment, usually compared with what you pay to get it in the first place. That is, how much money do you have when you get out of this investment, compared with how much you put into this investment in the beginning. Includes the dividends you receive while you hold it, and the price you get when you sell it, less the costs of holding and keeping and selling it, including taxes and broker’s fees and your time. For many purposes, the price you sell for, compared with the price you buy for, gives you a good approximation of the return.
sqrt(), square root. The square root of x is sqrt(x). Nearly every spreadsheet app provides sqrt(), and you probably have a square root function on the calculator app on your phone, and you can type “square root of 0.93” into your favorite search engine to get the calculation, and you can calculate it by hand (ask your favorite search engine).
Ticker (a.k.a. Ticker Symbol): A standardized few letters or numbers representing a stock or bond or ETF or mutual fund or something else traded on an exchange. Examples: AMZN is the ticker for Amazon.com, IYR is the iShares U.S. Real Estate ETF, LUV is Southwest Airlines, VOO is the Vanguard S&P500 ETF, STZ/B is the Constellation Brands Inc. class B shares.
10yr growth of price: the most recent price divided by the price on this date ten years ago.
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Part 3

Appendix 1

Appendix 2
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Images and Sources
See Part 1.
Alma, Michigan, USA. Image: Daniel Brockman, Aug 2019, Public Domain 
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