Exam 1 study guide - decide to do something. Tax rate on...

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1. Maximize stock price 2. Where are you going to get money? 3. Corporation forms, Sole proprietorship (most types of businesses), partnership a. Differences: Taxes and Liabilities b. Corporation: limited liability c. Sole Proprietorship: Unlimited Liability 4. Agency Problem: When management does different things than the owners want them to do 5. Primary Market: first time stock is sold to a market a. Secondary: second time the stock is sold, between buyers 6. Historical record: what has had the highest/lowest risk and return? a. Treasury bill has lowest risk and return 7. Greater the risk, the bigger the return 8. Book Value: the historical cost of the asset, Market Value: what someone will pay for it. Market value is more relevant 9. Net Working Capital: Current assets – current liabilities 10. Quickly converted to cash without significant loss of value 11. Marginal Tax rate: determine how much our taxes are going to increase/decrease if I
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Unformatted text preview: decide to do something. Tax rate on the next dollar of income I will make 12. Depreciate is non cash. 13. Balance Sheet is at a period of Time 14. DuPont tells you how you can get return on equity, the total asset turnover, the profit margin and the equity multiplier 15. Learn something about the company a. creditors, workers, shareholders, suppliers, potential employees 16. Compare ratios a. Overtime b. To other companies 17. Problems when compare them to other companies 18. Help you figure out what the next year is going to look like, find out some issues (consistency), help to avoid surprises 19. Internal growth rate : uses internal funds to grow and equity a. Sustainable growth rate- uses some debt money to help grow, but no equity...
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This note was uploaded on 03/30/2010 for the course FMIS 3601 taught by Professor Vizanko during the Spring '08 term at University of Minnesota Duluth.

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Exam 1 study guide - decide to do something. Tax rate on...

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