BMGT 301 Sections 201/501 Exam II Study Guide
Exam Date: October 26, 2016
This exam will cover all material in book and in class discussions from the end of Exam I until and including the
October 19 c
Chapter 2 book notes
Introduction to Financial Statement Analysis
o 2.1 Firms Disclosure of Financial Information
Financial statements accounting reports issued by a firm
quarterly and/or annually th
Chapter 2 class notes
Introduction to financial statement analysis
o What is depreciation designed to capture?
Accounts for the wear and tear on an asset
Lowers taxes for a firm
o What does a high
Chapter 3
Time value of money: An Introduction
o Valuation Principle: Net present value = present value of benefits
present value of costs
NPV = PVbenefits Pvcosts
o Arbitrage is not over time, has
Chapter 4
Time value of money problems, problems and more problems
PV = FV1/(1+r) + FV2/(1+r) + FV3/(1+r) + etc.
o Problem:
Invest $100 today, you will receive $40 in 1 year and $75 in 2
years
o Cas
Net Working Capital (NWC) = CA CL
Gross Margin: Gross profit/sales
Operating Margin: Op Income/Sales
RE: NI-dividends
Operating Cash Flow (OCF) = EBIT + Depr.
Taxes (cash from day to day activities)
MULTIPLE CHOICE. Choose the one alternative that best completes the
statement or answers the question.
1) Howard is saving for a holiday. He deposits a fixed amount every month in a bank
account with
Exam 3, BMGT 340, Spring 2014, Version 1 ANSWER KEY
Name_
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
1)
Year
1
2
Free Cash Flow $12 million
Chapter 9:
Capital budgetlists the projects and investments that a company plans to undertake
during future years
Incremental Earnings before Interest and Taxes(EBIT)= Incremental revenueincremental c
Exam 3, BMGT 340, Spring 2014, Version 1 ANSWER KEY
Name_
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers
the question.
1)
Year
1
2
Free Cash Flow $12 million
KEY - Exam 3 Fall 2014 VERSION 1
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the
question.
1) Year
1
2
3
4
Free Cash Flow $22 million $26 million $29 milli
Chapter 10
Dividend payments determine the stock price no adjustment
necessary
Total payouts (all div and repurchases) determine the equity
value
Enterprise Value =Market value of equity + debt Cash
BMGT 340 Exam 3 Fall 2013 - version 1 Key
1. Gonzales Corporation generated free cash flow of $88 million this year. For the next two years, the company's free cash flow is
expected to grow at a rate
EAR(effective annual rate )
Annual percentage yield (APY)- indicates total interest
earned at end of one year
Convert EAR for one period to an equivalent discount rate
for n periods
N period discount
Chapter 1 book notes
Corporate Finance and the Financial Manager
o Why Study Finance?
Career paths have become less predictable and more dynamic
Change jobs pretty frequently compared to years ago
Chapter1slidessupplement
1)Ifinterestratesrise,whatwilltypicallyhappentobondprices?
o Fall
PV=Sumofcfw_FVi/(1+r)^n
2)Buyingasinglecompany'sstockusuallyprovidesasaferreturnthanastock
mutualfund
o Fals
Chapter 7: Stock Valuation
Stocks Beta- percentage change in its return that we
Example: Decide to hold stock for 3 years, get a
expect for each 1% change in the markets return
dividend of $2, then $2
Chapter 1
Balance Sheet Identities
'
Assets=Liabilities+ Stockholder s Equity
Net WorkingCapital=Current AssetsCurrent Liabilities
M arket Valueof Equity
Market Book Ratio =
Book Value of Equity
Enter
Ratio and Industry Analysis Report: Manpower Group Inc.
Economic and Industry Analysis.
According to Hoovers, Manpowergroup Inc. (MAN) primarily operates in the Staffing
Services Industry (SIC code 73
CHAPTER6 INTEREST RATES
More risk, more interest wanted
Prefer to consume now rather than later
Higher rates, people spend less
Good times: money flowing freely, smaller spreads, easier credit
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