accounts receivable
turnover
activity ratios
The number of times per year
accounts receivable are paid and
replaced.
Accounts Receivable Turnover =
Sales/Average Accounts Receivable
Used to measure the speed
with which various accounts
are converted to sa
annual compounding
annual percentage rate
(APR)
Bigger Fool theory
compounding
compounding period
Compound interest
calculated with a
compounding interval of
1 year.
The simple interest rate for a whole year, as
opposed to the periodic rate, which is the
default
default risk premium (DRP)
discount (discount bond)
The failure to fulfill an
obligation. For example, the
failure of a borrower to make
interest or principal payments
or to adhere to covenants.
A component of a bond yield
which compensates the bo
Finance-Chapter 8-Stock Valuation and Market Vocabulary
Study online at quizlet.com/_22wpj1
1.
anomalies
In the financial context, events that occur on
occasion that appear to violate the tenants of
market efficiency.
2.
constant
growth
model
A model for
anomalies
constant growth
model
cumulative dividends
In the financial context, events
that occur on occasion that
appear to violate the tenants
of market efficiency.
A model for computing the value of
stock that assumes dividends grow
at a constant rate f
amortized loan
A loan where the borrower repays the
loan with level and regular periodic
payments. Each payment incorporated a
blend of interest and principal. The
payments are applied first to interest
and the remainder is applied to
principal.
annuity
A
Finance Vocabulary-Chapter 2-Financial Statements and
Ratio Analysis
Study online at quizlet.com/_22o04u
1.
accounts
receivable
turnover
The number of times per year accounts
receivable are paid and replaced.
10.
Du Pont
Ratio
analysis
Accounts Receivable
capital asset pricing
model (CAPM)
Describes the relationship between
the required return, or cost of
common stock equity capital, and
the nondiversifiable risk of the firm
as measured by the beta coefficient.
constant growth
valuation model
A model for c
Finance-Chapter 11-Vocabulary-Cost of Capital
Study online at quizlet.com/_284tcj
1.
capital asset pricing
model (CAPM)
Describes the relationship between the required return, or cost of common stock equity capital, and the
nondiversifiable risk of the fi
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Chapter3
Evaluation of Financial
Performance
Introduction
n Uses
of Financial Analysis
n Identifies
the major strengths and
weaknesses of a firm
n Used by:
n Financial Managers
n Credit Managers
n Security Analysts
n Bankers
n Unions
Introduction
n Interp
Chapter5
The Time Value of Money
Introduction
n Time
Value of Money
n A necessary prelude to:
n Valuation of securities and other
assets
n Capital budgeting
n The cost of capital
n Working capital management
n Lease analysis
Introduction
nA
Word About Not
Chapter2
The Domestic and
International Financial
Marketplace
AnOverviewoftheU.S.
FinancialSystem
n Saving-Investment
Cycle
n Surplus
Spending Units
n Deficit Spending Units
AnOverviewoftheU.S.
FinancialSystem
n Financial
Assets
n Money
n Debt
Securities
Chapter4
Financial Planning and
Forecasting
FinancialPlanning
n
Strategic Planning
n
n
Deals with the overall direction of
the firm
Operational Planning
Subset of Strategic Planning
n Details where the firm wants to be
at some future point in time and
wha
ContemporaryFinancial
Management,13thEdition
Prepared by William T. Chittenden
Texas State University
Chapter1
The Role and Objective of
Financial Management
Introduction
q
Some Questions Faced by
Financial Managers
Will a particular investment be
success
comprehensive exam question bank
Multiple Choice Identify the choice that best completes the statement or answers the question. _ 1. What would the future value of $100 be after 5 years at 10% compound interest? a. $161.05 b. $134.54 c. $127.84 d. $151.29
Chapter 16
Working Capital Policy and Short-Term Financing
CHAPTER 16
WORKING CAPITAL POLICY AND
SHORT-TERM FINANCING
SOLUTIONS
TOPROBLEMS:
1.a.CurrentAssets
=Cash
+Marketable
Securities
+Accounts
Receivable
+Inventories
=$3,810
+$2,700
+$27,480+
$41,295
CHAPTER 2
THE DOMESTIC AND INTERNATIONAL
FINANCIAL MARKETPLACE
SOLUTIONS TO PROBLEMS:
1. Returnsoverthepast12months:
a. +41.1%
b. +44.5%
c. +52.3%
d. +54.3%
2.PercentageHoldingPeriod(HP)Return
=[(44004000+4(40)/4000]x100%
=14%
Note:Thisproblemignorestrans
Chapter 7
Common Stock: Characteristics, Valuation and Issuance
CHAPTER 7
COMMON STOCK:
CHARACTERISTICS, VALUATION AND
ISSUANCE
SOLUTIONS TO PROBLEMS:
1.
a. Po=D1/(keg)
g=0.07Do=$1.70 e=.12
k
Dl=Do(1+g)=1.70(1
+0.07)=$1.819
Po=1.819/(0.12
0.07)=$36.38
b.
Chapter 5
The Time Value of Money
CHAPTER 5
THE TIME VALUE OF MONEY
SOLUTIONS TO PROBLEMS:
1.
a.FV3=$1,000(FVIF
.06,3)=$1,000(1.191)=$1,191
b.FV5=$1,000(FVIF
.06,5)=$1,000(1.338)=$1,338
c.FV10=$1,000(FVIF
)=$1,000(1.791)=$1,791
.06,10
2.
a.Presentvalue
of
Chapter 4
Financial Planning and Forecasting
CHAPTER 4
FINANCIAL PLANNING AND
FORECASTING
SOLUTIONS
TOPROBLEMS:
4.
Atlas Products Inc.
Cash Budget Worksheet
First Quarter, 2010
December
January
February
March
Estimated Sales
$825,000
$730,000 $840,000 $92
MIRR problems
1. Initial Outlay = 600 followed by cash inflows of 200 in year 1, 300 in year 2 and 400 in
year 3. Assume that the cost of capital is 10%.
MIRR is approximately 17%
2. Problem 2
Year
0
1
2
3
4
5
Cash
Flow
-8000
3650
2500
1200
2700
5000
Assu
Answer to Assigned End-of-Chapter Questions
1.
a. ANSWER: The agency problem reflects a conflict of interests between decision-making
managers and the owners of the MNC. Agency costs occur in an effort to assure that managers
act in the best interest of t