Finance Exam Study Guide finance
Study this set o nline at: https://www.cram.co m/flashcards/finance-5168890
i ndenture a wri tten agreement that contai ns the speci f i c detai l s rel ated to a bond i ssue
i f a standard devi ati on i s hi gh: more vol ati l e/hi gher ri sk
cash + f i rm = debt +equi ty
i f you have a beta> 1 a sock has more systemati c ri sk and a H I GH E R ri sk premi um
book val ue i s an assets val ue recorded on the bal ance sheet
BV = CAPE X - (depreci ati on x proj ect l i f e)
(E (Rm)-Rf ) i s al so cal l ed market ri sk premi um
i f the growth on a di vi dend i s greater than the rate of return: you have to cal cul ate manual l y
, Finance Exam Study Guide finance
Study this set o nline at: https://www.cram.co m/flashcards/finance-5168890
real rate of return= (1 +nomi nal rate) / (1+i nf l ati on) - 1
how do you cal cul ate OCF ? sal es- VC- F C - D E P = E BI T - T ax + D E P
mi x of current assets & l i abi l i ti es whi ch a company uses to run i t's day to day
worki ng capi tal management
busi ness
1. threaten to f i re any manager f or poor perf ormance
three ways to i mprove agency probl ems are: 2. perf ormance based pay
3. manageri al stock ownershi p
mi x of l ONG T E RM debt and equi ty that a busi ness hol ds, i n order to f i nance i t's
capi tal structure
purchase of LT assets
l atency ti me to execute a trade
the mi x of LT i nvestments that a f i rm shoul d buy (what proj ects are they goi ng to
capi tal budgeti ng
take on)
wi th capi tal budgeti ng, what f i nance methods are adopted: NPV, payback, I RR
Study this set o nline at: https://www.cram.co m/flashcards/finance-5168890
i ndenture a wri tten agreement that contai ns the speci f i c detai l s rel ated to a bond i ssue
i f a standard devi ati on i s hi gh: more vol ati l e/hi gher ri sk
cash + f i rm = debt +equi ty
i f you have a beta> 1 a sock has more systemati c ri sk and a H I GH E R ri sk premi um
book val ue i s an assets val ue recorded on the bal ance sheet
BV = CAPE X - (depreci ati on x proj ect l i f e)
(E (Rm)-Rf ) i s al so cal l ed market ri sk premi um
i f the growth on a di vi dend i s greater than the rate of return: you have to cal cul ate manual l y
, Finance Exam Study Guide finance
Study this set o nline at: https://www.cram.co m/flashcards/finance-5168890
real rate of return= (1 +nomi nal rate) / (1+i nf l ati on) - 1
how do you cal cul ate OCF ? sal es- VC- F C - D E P = E BI T - T ax + D E P
mi x of current assets & l i abi l i ti es whi ch a company uses to run i t's day to day
worki ng capi tal management
busi ness
1. threaten to f i re any manager f or poor perf ormance
three ways to i mprove agency probl ems are: 2. perf ormance based pay
3. manageri al stock ownershi p
mi x of l ONG T E RM debt and equi ty that a busi ness hol ds, i n order to f i nance i t's
capi tal structure
purchase of LT assets
l atency ti me to execute a trade
the mi x of LT i nvestments that a f i rm shoul d buy (what proj ects are they goi ng to
capi tal budgeti ng
take on)
wi th capi tal budgeti ng, what f i nance methods are adopted: NPV, payback, I RR
