300Exam1Review

300Exam1Review - Finance 300 Review For Exam I Chapter 1...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Review 1, Spring 2008 1 Finance 300- Review For Exam I Chapter 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Review 1, Spring 2008 2 Course Perspective Corporation: a separate legal entity with its own legal/financial life. Advantages: limited liability for the owners Disadvantages: Double taxation 1. Corporate Taxes 2. Dividends Sole proprietorship: Partnership:
Background image of page 2
Review 1, Spring 2008 3 Course Perspective Cont’d Financing the assets: What is financing the assets of the firm? debt or equity
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Review 1, Spring 2008 4 Equity and Bonds Bondholders always get paid first and stockholders only get what is left after bondholders get their money (that is why stockholders are called residual claimants ). Equity rights of ownership/control rewards of ownership
Background image of page 4
Review 1, Spring 2008 5 Course Perspective What should a firm’s ultimate goal really be? Capitalist system: “to maximize shareholder wealth” What can get in the way of that goal? Agency Problems
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Review 1, Spring 2008 6 Ch. 3: Analyzing Financial Statements
Background image of page 6
Review 1, Spring 2008 7 Balance Sheet Assets Current Assets- Cash, Accounts Receivable, Inventory, Pre-paid Expenses Fixed Assets – Net of Depreciation Liabilities Current Liabilities Non-interest Bearing Interest Bearing Long-term Liabilities – generally interest bearing Equity Paid-in Capital Retained Earnings
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Review 1, Spring 2008 8 Income Statement Sales Cost of Goods Sold General and Administrative Expenses Depreciation (sometimes imbedded in CGS or another) Interest Expense (not an operating expense) Taxes
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 27

300Exam1Review - Finance 300 Review For Exam I Chapter 1...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online