Macroeconomics 2020 Definitions
Phillips Curve: originally a relationship between the unemployment rate and the
rate of change of money wages. Now often drawn as a relationship between GDP and
the rate of change of money wages.
Introduction to Valuation: The Time Value of Money
Lecture Tip: You may find the phrases time value of money and a dollar today is
worth more than a dollar later a bit confusing. In some ways it might be
better to say the money value of time.
Discounted Cash Flow Valuation
Future and Present Values of Multiple Cash Flows
Future Value with Multiple Cash Flows
There are two ways to calculate future value of multiple cash flows: compound the
accumulated balance forward one period at a time o
Working with Financial Statements
Useful Web Sites
Where X is the amount of money that was borrowed via notes payable and
used to purchase more inventory.
CA $1,312,500 + X
$525,000 + X
$1,312,500 + X = 2.0 ($525,000 + X).
$1,312,500 + X = $1,050,000 + 2.0X
$ 262,500 = X
Chapter 2, Solutions
Cornett, Adair, and Nofsinger
CHAPTER 2 REVIEWING FINANCIAL STATEMENTS
1. List and describe the four major financial statements.
The four basic financial statements are:
1. The balance sheet reports a firms assets, liabi
Financial Statements, Taxes, and Cash Flow
Useful Financial Web Sites
The Balance Sheet
Assets: The Left Side
Assets are divided into several categ
Financial Statements Indicate Qualcomm Is Enjoying A Competitive
January 5, 2013 by Clinton Holmes of Seeking Alpha financial publication
The other day I wrote an article describing a method to identify companies that have a
Excerpted from NetMBA
Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios
can be calculated from information provided by the financial statemen
Maximize the value of a company means get more benefit. At the same time cost
The three factors that determine value: cost, competitors pricing and perceived
The stockholders wealth maximization should be though of as a
Sell it or Keep it?
Suppose you own stock in a company. The current price per share is $25.
Another company has just announced that it wants to buy your company and
will pay $35 per share to acquire all of the outstanding stock. Your company's
An S corporation (sometimes referred to as an S Corp) is a special type of corporation created
through an IRS tax election. An eligible domestic corporation can avoid double taxation (once to
the corporation and again to the sha
Forbes Rank of Top CEO Compensation - 2012
1-Year 5 Year Shares
($mil) ($mil) ($mil)
131.19 285.02 51.9
John H Hammergren McKesson
Michael D Fascitelli Vorn
PRINCIPLES OF FINANCE CHAPTER 1 HOMEWORK SOLUTIONS
The value of a firm can be measured by the market value of its stock. Thus, the firm maximizes
value/wealth by maximizing the value of it stock.
Value is measured as the present value of the cash f
Critics have charged that compensation to top managers in the United States is
simply too high and should be cut back. For example, a recent Forbes surveys
showing the 2012 annual compensation for the top 10 CEOs is attached. Are such
amounts excessive? I
1.1. Corporate Finance and the Financial Manager
A. What Is Corporate Finance?
Corporate finance addresses several important questions:
1. What long-term investments should the firm take on? (Capital budgeting)
2. Where will we get the long-term financing
AP/ January 24, 2013, 4:15 PM
Apple shares nosedive as growth appears to
NEW YORK Apple (AAPL) shares plunged Thursday after the company reported quarterly
results that point to growth slowing after five blowout years.
The stock fell $63.51, or 12.3
Apples Cook says firm in prolific period of
By Hayley Tsukayama, Thursday, January 24, 3:57 PM
Today is the 28th birthday of the Mac, but its not a day of celebration for Apple. The firms
stock opened below $500 again and continued to fall as i
Chapter 7 Notes
Flexible Budgets, Direct-Cost Variances, and Management Control
Understand static budgets
the master budget based on output planned at
start of period
and static-budget variances
the difference between actual result
CHAPTER 6 NOTES
This chapter introduces the topic of budgets. Budgets are a primary financial planning
tool used by businesses and other organizations. The chapter explains how businesses use
and prepare budgets as part of the management p
ABC, cost hierarchy, service.
Output unit-level costs
a. Direct-labor costs, $146,000
b. Equipment-related costs (rent, maintenance, energy, and so on), $350,000
These costs are output unit-level costs because they are incurred on each unit of mat
CHAPTER 5 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT 5-16 1. (20 min.) Cost hierarchy. a. Indirect manufacturing labor costs of $1,200,000 support direct manufacturing labor and are output unit-level costs. Direct manufacturing labor generally i
Multiple Choice Questions 1. _ and _ are typically the measures of volume of activity in traditional volume-based cost systems. A. Practical capacity; products sold B. Direct labor hours; practical capacity C. Direct labor hours; machine hours D. Square f
1a. Contribution Margin
1b. operating income
2. Garrett's proposal will have an effect by lowering the contribution cost by lowering the variable cos
All managers want to know how profits will change as
the units sold of a product or service change.
1. Explain the features of cost-volumeprofit (CVP) analysis
Home Depot managers, for example, might wonde
1. Which of the following does NOT represent a cause-and-effect relationship?
a. Utility costs increase at the same time that insurance costs increase.
b. Material costs increase as the number of units produced increases.X
c. A company is charged 40 cents
Chapter 2 Homework SOLUTIONS
variable cost per unit of a product should stay the same throughout the relevant range of production. Answer:
Diff: 2 Terms:
variable cost, relevant range Objective: