Manec Test 2 inclass review

Manec Test 2 inclass review - left, then the central bank...

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Ch 11 Information problem - The person getting the money knows more then the person giving the money. Asymmetric information 1. Adverse selection 2. Moral Hazard – if you screw up, you pay the price Ch 12 Balance Sheet – BALANCE THEM! Ch 13 History of the banking system Dual banking system Why we have so many banks McFadden Act – created Monopolies Glass Stegall Regal Neil Act Gram Leach Blyle Act CRA presentation Long term Capital Management presentation Ch 10 Foreign exchange Price of one currency in terms of another currency Long term exchange rates are influenced by inflation Short term are influenced by interest rates Real interest = nominal – inflation What monetary policy do we have? Weak – It will encourage exports China Presentation Supply and Demand Curves Trade imbalance (U.S. point of view) – Greater supply of $, demand curve shifts
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Unformatted text preview: left, then the central bank of china will buy the extra $, but it cause Chinese inflation (problem), Page 236 Table 10.2 shows things that shift supply and demand curves Supply is always domestic point of view; Demand is foreign point of view RU 9.6 HUSTS 608,000 $/E 1.42 Fed Funds Rate 0-.25 10 yr Treasury - 2.48% CPI-1.14% (year ago #/Current year #) GDP 2% KNOW HOW TO DO HOMEWORKS Valuation CAP TABLES ownership of the company Last price * # of shares Enterprise Value (EV) = Equity + Net Debt Net debt = interest bearing debt - cash EBITDA (5x is a good multiple) Multiple on Sales (1-2x) 40 MC A Few Work Out problems Vaughn Cook and Rockwell...
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Manec Test 2 inclass review - left, then the central bank...

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