Notes on Final

Notes on Final - o Know fundamentals, expected value o Make...

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Notes on Final for 110 - Omit chapter 16, go from 15-17 - / - Chapter 15 o How to select MARR o When to be conservative or not o Capital stuff, look at notes o CAP M? - Chapter 17 o Using accounting to look backwards in this course – thinking of present or past o Balance sheet Assets always noted in descending order of liquidity – cash, then cash equivalents, then inventories Liability also listed in descending order of liquidity o Don’t need to know acid test ratio o Problem with having high debt to equity ratio affects your ability to pay for the debt – can become increasing burden. o Intangeable asset Reputation Logo Intellectual property o Gross profit margin o Don’t need to know interest coverage ratio o Retained earnings go back into the balance sheet – tied to income statement o Measure EPS per # of shares outstanding __________________________________________________--
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- Will outline where I want to focus the efforts - DO THE PRACTICE FINAL!!!! - Probability and uncertainty
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Unformatted text preview: o Know fundamentals, expected value o Make sure you are working with present value figures for cash flows o If the total expected value (EV) of a set of outcomes is positive, then the project is justified o Sum of all probabilities is 1.00 (100%)-Chapter 11 depreciation o Accounting concept book value doesnt equal market value. o Know asset disposal o Dont worry about other depreciation methods other than what is on slides-Chapter 12 o Ignore individual taxes-Chapter 13 o 3 techniques o Know what minimum cost life is-Chapter 14 o Know CPI consumer price index, know that value (benchmarked, where it was last year, know the trends o Know why inflation occurs-Chapter 15 o Sources of capital for companies, etc.-NO CHAPTER 16!!!!-Chapter 17 Current events-Financial regulation-Inflation and deflation **********-Debt crisis in Europe-Sovereign debt-Credit spreads TED spread o Measuring -...
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Notes on Final - o Know fundamentals, expected value o Make...

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