BA 302 FINAL EXAM Study Guide Penn State
Labor Intensity=:
Labor Cost/Capital Cost
Service Factory:
Capital costs are high compared to labor costs
Service Shops:
Capital costs are high compared to labors costs- but service is
more customized
Mass Service:
Which of the following concerning the relationship between risk and return is correct? Safer investments tend to have lower returns. Which of the following concerning the relationship between risk and return is correct? Investors generally require a highe
Introduction to
Finance
Session 2
Financial Statements, Taxes,
and Cash Flow
1
Formulas I Need To Know
BALANCE SHEET IDENTITY:
ASSETS = LIABILITIES + STOCKHOLDERS EQUITY
NET WORKING CAPITAL:
NET WORKING CAPITAL = CURRENT ASSETS CURRENT LIABILITIES
INCOME
Introduction to
Finance
Session 5
The Time Value of Money
1
Formulas I Need To Know
FUTURE VALUE EQUATION:
FV = PV (1 + r)t
PRESENT VALUE EQUATION:
PV = FV / (1+r)t
RATE EQUATION (%CAGR):
r = %CAGR = [(FV/PV)^(1/t)]-1
TIME EQUATION:
t = [ln(FV/PV)] / [ln(
Introduction to
Finance
Session 6
Discounted Cash
Flow Valuation
1
Formulas I Need To Know
PRESENT VALUE OF AN ANNUITY:
PVA = C x [1 1/(1 + r)t]/r
FUTURE VALUE OF AN ANNUITY:
Mortgage Equation
Student Loan Equation
Car Loan Equation
Credit Card Equation
W
Introduction to
Finance
Session 4
Long-Term Financial
Planning and Growth
1
Formulas I Need To Know
DIVIDEND PAYOUT RATIO (d):
CASH DIVIDENDS / NET INCOME
CAPITAL INTENSITY RATIO:
TOTAL ASSETS / SALES
INTERNAL GROWTH RATE:
(ROA x b) / [(1 (ROA x b)]
SUSTA
Introduction to
Finance
Session 3
Working With Financial
Statements
1
Formulas I Need To Know
CURRENT RATIO:
CURRENT ASSETS / CURRENT LIABILITIES
QUICK RATIO:
CURRENT ASSETS - INVENTORY / CURRENT LIABILITIES
DEBT TO EQUITY RATIO:
TOTAL DEBT / TOTAL EQUITY
BA 302 EXAM 1 Study Guide Penn State
System:
Pretty much the same as a process, when a bunch of parts are
put together making it more significant than just one part by
itself.
Isolated Functional Systems:
Not having all your information in one system, dif
Old Exam Packet Spring 2004
Answer Keys
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Exam 1
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Yu Feng Yof5010@psu.edu BA302 Chapter 8 Discussion Question 2. A fire station follows the lead capacity strategy because its case of emergency care. It needs to be anticipated in order to satisfy the demand. A drivers license testing center should follow
1 A B C D E
Which of the following statements regarding capital budgeting is correct? It is the process of planning and managing long-term investments. It is the process of managing short-term assets and liabilities. It is the process of managing long-ter
Group 1 1. Assuming you are in the 30% tax bracket, what is your after-tax rate on a 2.5% CD? A. B. C. D. E. 1.25% 0.70% 1.50% 1.75% 2.00%
Answer: D 2. Assuming you are in the 25% tax bracket, what is your after-tax rate on a 2.5% CD? A. B. C. D. E. 1.25%
Group 1
1. Whichofthefollowingisacharacteristicofawellfunctioningsecurities market? A. Insecurepropertyrights B. Contractsdifficulttoenforce C. Noaccountabilityofborrowersandinvestors D. Transparentfinancialstatements E. Marketplayersdonotbearconsequences
Introduction to
Finance
Welcome to
Introduction to Finance
1
4 Key Topical Areas
Financial Decision-Making in Organizations
Valuation of Future Cash Flows
Financial Markets and Institutions
Investments
2
Introduction to
Finance
Session 1
Introduction to C