Finance 2000
Accounting Review
Part I
Financial Statements
Market Value vs. Book Value
Book Value = how much we pay for something
Balance Sheet
A list of the things we have and the things we owe
Specific to a specific point in time (todays is (in theo
Finance 2000 Chapter 2 Homework
1. Penguin Pucks has current assets of $5100, net fixed assets of $23800, current
liabilities of $4300, and longterm debt of $7400. What is the value of the shareholders'
equity account for this firm? How much is net worki
Finance 2000 Chapter 3 Homework
1. SDJ, Inc., has net working capital of $2,160, current liabilities of $5,510, and inventory
of $1,240. What is the current ratio? What is the quick ratio?
NWC
= Current assets Current liabilities
$2,160
= Current assets $
Chapters 13 Finance Exam 2
Chapter 1:
I.
What is Finance?
o Finance Definition
The system that includes the circulation of money, the granting of credit,
the making of investments, and the provision of banking facilities.
o Three areas:
Financial Manag
Finance 2000 Practice Questions and Content to Review for Exam 2
3. Review your notes on intrinsic value. Define intrinsic value and market value.
Do you buy a stock when market value < intrinsic value?
Yes.
15. Would these actions increase or decrease ca
Exam 3 Review Questions These should not be your only study tool. These focus on
calculations, which will be a large part of the exam, but they do not cover in depth the issues on
ratios, yield curve determinates, and interest rate issues. Therefore, you
Exam 2 guideline
Ch 6 to 9
Ch 6.
U.S Consumer market
5 premises of consumer behavior
Consumer behavior is purposeful and goal oriented
Consumer has free choices
Consumer behavior is a process
Consumer behavior can be influenced
There is a need for co
Finance 2000 Practice Questions and Content to Review for Exam 2
1. Use your notes from class AND your book to list the pros and cons of Sole Proprietorships,
Partnerships, C Corporations, S Corporations, and LLC/LLPs.
Sole Proprietorship
Pros:
Cons:
Part
Finance 2000 Practice Questions for Exam 4 Solutions
1. Callaghan Motors' bonds have 25 years remaining to maturity. Interest is paid annually, they have
a $1,000 par value, the coupon interest rate is 10.5%, and the yield to maturity is 8%. What is the
b
Practice Questions to Review for Exam 4
Finance 2000
1. Callaghan Motors' bonds have 25 years remaining to maturity. Interest is paid annually, they have
a $1,000 par value, the coupon interest rate is 10.5%, and the yield to maturity is 8%. What is the
b
Finance 2000 Practice Questions and Content to Review for Exam 3
1.
You deposit $800 in a savings account that pays 2 percent interest, compounded annually.
What is the balance in your account at the end of one year?
N=
i=
PV =
PMNT =
FV =
2. Tammy deposi
Actus Reus
Mental element in a crime
Mens rea
The act itself, physical element of crime
Murder
intentional killing
Definition
unlawful killing/unintentional
2 Types
Voluntary
"Heat of Passion" (Provoked)
Involuntary
Killing with no intent of harm
sh i
Final Exam Review
FINANCE 2000
Exam Details
Monday 8th May
5:30pm 7:30pm
Naka Auditorium
(Formerly Engineering West)
Bring With You
Financial Calculator
Pencil and Eraser
Student ID
Exam Format
30 Questions
Multiple Choice
Comprehensive
A formula sheet wi
Exam 2 Review
FINANCE 2000
Exam Details
Thursday 2nd March
6:30pm 7:30pm
Conservation Auditorium
111 AnheuserBusch Natural Resources Building
Bring With You
Calculator
Pencil and Eraser
Student ID
Exam Format
30 Questions
Multiple Choice
Be prepared to t
Finance 2000
Final Exam Study Guide
(Conceptual, unless stated as calculation)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Advantages and disadvantages of different types of organization
Reducing stockholder vs. bondholder conflict
Market types/charact
Finance Exam 4 Study Guide
Chapter 7 Bonds and their Valuation
I.
Who issues bonds?
o Bonds: a longterm contract under which a borrower agrees to make payments of
interest and principal on specific dates to the holders of the bond.
Issued by the gover
Exam 4 review
1. When market interest rates are 5%, how much would you pay for a bond that has an 8% semiannual coupon payment and matures in 5 years? $1,131
The market rate of 5% is our implied yield to maturity or I/Y on our calculator. Remember to
adju
Exam 4 review
1. When market interest rates are 5%, how much would you pay for a bond that has an 8% semiannual coupon payment and matures in 5 years?
2. What is the yield to maturity on a 10 year zero coupon bond with a par value of $1,000 that is
curren
1. A firm has earnings before taxes of $250 million. If they pay out $50 million in dividends and
have a 40% tax rate, what will be the increase in retained earnings?
2. A machine with a useful life of 10 years is purchased for $100,000. The purchasing co
1. What was the percentage change in Googles working capital from 2013 to 2014?
Find the difference and divide by the first year to find percentage change:
(80,685  72,886)/72,886 = 10.7% increase
2. What is Googles net working capital (NWC) as of Decemb
Finance 2000 Practice Questions and Content to Review for Exam 2
1. Formulas to know
Current Ratio
Quick Ratio
Return on Equity
Return on Assets
Operating Margin
Gross Margin
Profit Margin (AKA Net Profit Margin)
Price to Earnings Ratio
Ear
Capital Investment Analysis: decisions concerning the deployment of a
company's longterm capital  huge amounts of cash involved, includes
longterm consequences
Decisions that included in Capital Investment Decisions:
1. Replacement Decisions: deciding
Chapter 13
Capital Investment Analysis
Learning Objectives
Review capital investment decisions and the net present value rule.
Discuss the competitors to net present value.
Describe working with the net present value rule.
Outline how to incorporate risk
1. Types of bonds Aa Aa a
Fixedincome securities consist of debt instruments and preferred stock. Bonds are debt securities in which a
borrower promises to pay a specified interest rate and principal at a future date.
Which of the following types of bonds
Finance 2000
Spring 2016
Exam 2 Study Guide
Advantages and disadvantages of different types of organization
Organizational chart
Managements primary goal
Intrinsic value
Intrinsic value vs. Price Equilibrium/undervalued/overvalued
Reducing ShareholderMan
Accounting Review
FINANCE 2000
Exam 1
Thursday 2nd February
6:30pm 7:30pm
Conservation Auditorium
111 AnheuserBusch Natural Resources Building
Bring With You
Calculator
Pencil and Eraser
Student ID
Exam Format
30 Questions
Multiple Choice
Be prepared to
Exam 4 Review
FINANCE 2000
Quiz Answers
1. The tighter the probability distribution of its expected future returns, the greater the risk of a given
investment as measured by its standard deviation.
False
2. The coefficient of variation, calculated as the
Hanesbrand:
CFF: 133
Net change in cash is decreasing (16 % over 2014)


Borrowing money to pay dividends and buy back shares
Buying back shares helped to improve EPS in front of investor
Number one or number 2 in most categories. Not much room to grow