Chapter 3 Adjusting Accounts For Financial Statements
The time period assumption presumes that an organizations activities can be divided into specific time
periods such as a month, a three-month quar
Merchandise consists of products, also called goods, which a company acquires to resell to
customers. A merchandiser earns net income by buying and selling merchandise.
Merchandisers are often identif
Chapter 12 Quiz
The average squared difference between the actual return and the average return is called the:
variance.
The average compound return earned per year over a multi-year period is called
Chapter 1 Quiz
The process of identifying projects which will produce positive cash flows is called: Capital
Budgeting
The mix of debt and equity capital for a firm is referred to as the firm's: Capit
Chapter 5 Quiz
The future value interest factor is computed as: (1 + r)t
The present value interest factor is computed as: 1 / (1 + r)t
As the discount rate increases, the present value of $2,000 to b
FINANCE QUIZ 1
1-Which one of the following is defined as a firm's short-term assets and its short-term liabilities?
WORKING CAPITAL
2-Public offerings of debt and equity must be registered with which
Finance 3403
Principles of Financial Management
Lecture Capture Video Streaming
Fall 2017 (3 credit hours) CRN: 17756
BU 303 and Online WF 2pm-3:20pm
Professor:
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LBO
High debt to purchase a public corporation
Collateral = assets of the target
Goal = to run the company better
Gain control by paying a premium
High debt means high debt service needs = reliable st
A PECKING ORDER PRIMER
by
Wm R McDaniel
Motivation
In his presidential address to the American Finance Association, Stewart Myers [1984]
recommended his pecking order theory as a superior solution to
Dividend Policy: Theories and Empirical Facts1
I start with some restrictive assumptions to see what I can discern about
the effect of dividend policy and dividend payments on the value of the
corpora
Extensions and Modifications of the Net Present Value for Application
Definition: The net present value is the value added to owners wealth by
acceptance of an expansion project or by the termination
Leasing from the Lessees Perspective
Define a symmetric lease as one where any cash inflow or benefit to the
lessor is an equal outflow or disadvantage to the lessee, and vice versa. The
lessor is a f
First check MIN, Chapter 9, p. 45 and 46.
A conversion ratio is how many shares of stock the bondholder can get for trading in the bond. A
conversion price is a nutty way of saying the conversion rati
OCS:
1.
On the board you see the theoretical model of the optimal capital structure. OK
a. Discuss the model, telling which assumptions must be relaxed for practical application.
b. And saying what ch
Statement of cash flows contains information about the flows of cash into and out of a company, and the
uses to which the cash is put. The statement is comprised of three sections, in which are presen
MBA CLASS OF 2018
Final offer of elective
courses.
Detail of courses
SUMMER TERM
Intensive electives & Study Tours in all June and
1st & 2nd week of July
START
12 Jun
END
DOW
TIME
COURSE
PROFESSOR
STU
Stock Valuation Problems
1. GAP Corporation's common stock dividend yield is 3.61%, it just paid a dividend of $2.75, and is
expected to pay a dividend of $2.89 one year from now. Dividends are expect
Annual Compounding
4.1
Compute the future value of $1,000 compounded annually for
a.
b.
c.
d.
4.2
10 years at five percent
10 years at seven percent
20 years at five percent
Why is the interest earned
CHAPTER7
7.1) Big Game, Inc., has 9% bonds, with an annual coupon, on the market with 12 years left to maturity.
If the yield to maturity is 8%, what is the bonds current price?
A) $1,075
B) $1,090
C)
TEST PREP - Interest Rates and Bond Valuation
Questions
1. The Walthers Company has a semi-annual coupon bond outstanding. An increase in the
market rate of interest will have which one of the followi
TEST PREP - Interest Rates and Bond Valuation
Questions
1. Mark just purchased a bond which pays $60 a year in interest. What is this $60 called?
A. coupon
B. face value
C. discount
D. call premium
E.
McDaniel's Infamous Notes
2016 Revision
by
Wm R McDaniel
Professor of Finance
1
1
CHAPTER 2
Projecting Cashflows
Numerical analysis for financial management decision making is based on forecasts of op
CHAPTER 3 SOLUTIONS TO PROBLEMS 6, 7, 8, 11, and 12
6.
7.
Net income
= Addition to RE + Dividends
= $395,000 + 195,000 = $590,000
Earnings per share
= NI / Shares
= $590,000 / 170,000 = $3.47 per shar
For each of the following, compute the future value: (Do not round intermediate calculations and
round your answers to 2 decimal places, e.g., 32.16.)
Present Value
$ 2,600
9,452
83,355
190,796
Years
1. For unemployed persons in the United States, the average number of months of unemployment at the end of
seven months. Suppose the following data are for particular region in upstate New York. The v