Capital Budgeting : Plan + mngmt. of LT Investments | Capital Structure Working Capital : firm’s short term assets & liabilities Agency Problem : conflict between owners & mngmt |Dealer owns stock otc, NYSE auction, nasdaq dealer Noncash Items :expenses charged agains rev that dont directly affect cash flow such as depreciation(inc st) Avg Tax Rate : total txs paid / ttl taxable income | Marg. Tx rate: Amnt of tx payable on the next $ earned Cash Flow from Assets : the ttl of CF to creditors and CF to stockholders, consisting of the following: Oper. CF, capital spending, & changes in NWC | Op. CF: cash generated from a firm norm. bus. Activities Common Size Statement : A standard financial statement presenting all items in percentage terms. Balance sheet itenms are shown as a % of assets and income statement items as a % of sales NWC =CA-CL | bk. Value of equity = A-L | Mrkt. Value of Equity =mrkt. Price X shares outstanding Op. CF= EBIT+ Dep. – Tax | Cap. Spend =
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