HFA Test 3 with verified answers
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Intrinsic |value |- |ANSWER-the |"true" |value |of |something
Market |value |- |ANSWER-the |price/value |at |which |an |asset |is |trading |in |the |open |market
Market |cap |- |ANSWER-market |value |of |a |company, |equals |the |price |per |share |of |stock |times |the |
number |of |shares |of |stock |that |exist
Revenue |- |ANSWER-= |sales |= |total |$ |a |company |brings |in |through |selling |goods |and |services
Income |- |ANSWER-= |net |income |= |earnings |= |profit
Expenses |- |ANSWER-= |costs
Fixed |costs |- |ANSWER-costs |a |company |incurs |regardless |of |how |much |they |produce/sell
Variable |costs |- |ANSWER-costs |that |depend |on |production/sales, |often |expressed |as |a |cost |per |unit
Operating |income/costs |- |ANSWER-income |or |costs |associated |with |the |operations |of |the |
business...doesn't |include |investments |in |other |companies, |taxes, |interest |payments
Financing |expense |- |ANSWER-= |interest |expense |(on |debt)
Assets |- |ANSWER-assets |are |things |of |value |that |the |company |owns |(such |as |cash, |inventory, |cash |the
|company |is |owed, |etc
Liabilites |- |ANSWER-stuff |a |company |owes...debt, |agreements |to |provide |services, |etc
, Shareholder's |equity |- |ANSWER-= |book |value |of |a |company |= |assets |minus |liabilities; |value |of |
company |according |to |its |balance |sheet
Current |assets |- |ANSWER-cash |and |cash |equivalents |+ |assets |that |are |expected |to |turn |into |cash |
within |a |year |(inventory, |cash |the |company |is |owed |within |a |year)
Liquid |assets |- |ANSWER-cash |+ |cash |equivalents |+ |assets |that |can |be |sold |quickly |and |easily |(includes
|"marketable |securities," |does |not |include |inventory)
Current |liabilities |- |ANSWER-liabilities |due |to |be |paid |off |within |a |year
Intangible |assets |- |ANSWER-assets |like |brands |or |patents |that |are |not |physical, |debt |owed, |or |cash
Dividend |- |ANSWER-a |periodic |cash |payment |to |shareholders |of |a |company
Leverage |- |ANSWER-= |a |measure |of |risk |if |things |go |bad |and |conversely, |upside |if |things |go |well
Operating |leverage |- |ANSWER-leverage |arising |from |the |operating |cost |structure |of |the |
business...higher |fixed |costs |relative |to |variable |costs |= |more |operating |leverage.
Degree |of |operating |leverage |- |ANSWER-= |% |change |in |operating |income/% |change |in |units |sold
Financial |leverage |- |ANSWER-arises |from |use |of |debt; |more |heavily |indebted |companies |(relative |to |
the |size |of |the |company) |have |more |financial |leverage.
Degree |of |financial |leverage |- |ANSWER-= |% |change |in |net |income/% |change |in |operating |income
Total |leverage |- |ANSWER-combines |operating |leverage |and |financial |leverage.
| | | | |
Intrinsic |value |- |ANSWER-the |"true" |value |of |something
Market |value |- |ANSWER-the |price/value |at |which |an |asset |is |trading |in |the |open |market
Market |cap |- |ANSWER-market |value |of |a |company, |equals |the |price |per |share |of |stock |times |the |
number |of |shares |of |stock |that |exist
Revenue |- |ANSWER-= |sales |= |total |$ |a |company |brings |in |through |selling |goods |and |services
Income |- |ANSWER-= |net |income |= |earnings |= |profit
Expenses |- |ANSWER-= |costs
Fixed |costs |- |ANSWER-costs |a |company |incurs |regardless |of |how |much |they |produce/sell
Variable |costs |- |ANSWER-costs |that |depend |on |production/sales, |often |expressed |as |a |cost |per |unit
Operating |income/costs |- |ANSWER-income |or |costs |associated |with |the |operations |of |the |
business...doesn't |include |investments |in |other |companies, |taxes, |interest |payments
Financing |expense |- |ANSWER-= |interest |expense |(on |debt)
Assets |- |ANSWER-assets |are |things |of |value |that |the |company |owns |(such |as |cash, |inventory, |cash |the
|company |is |owed, |etc
Liabilites |- |ANSWER-stuff |a |company |owes...debt, |agreements |to |provide |services, |etc
, Shareholder's |equity |- |ANSWER-= |book |value |of |a |company |= |assets |minus |liabilities; |value |of |
company |according |to |its |balance |sheet
Current |assets |- |ANSWER-cash |and |cash |equivalents |+ |assets |that |are |expected |to |turn |into |cash |
within |a |year |(inventory, |cash |the |company |is |owed |within |a |year)
Liquid |assets |- |ANSWER-cash |+ |cash |equivalents |+ |assets |that |can |be |sold |quickly |and |easily |(includes
|"marketable |securities," |does |not |include |inventory)
Current |liabilities |- |ANSWER-liabilities |due |to |be |paid |off |within |a |year
Intangible |assets |- |ANSWER-assets |like |brands |or |patents |that |are |not |physical, |debt |owed, |or |cash
Dividend |- |ANSWER-a |periodic |cash |payment |to |shareholders |of |a |company
Leverage |- |ANSWER-= |a |measure |of |risk |if |things |go |bad |and |conversely, |upside |if |things |go |well
Operating |leverage |- |ANSWER-leverage |arising |from |the |operating |cost |structure |of |the |
business...higher |fixed |costs |relative |to |variable |costs |= |more |operating |leverage.
Degree |of |operating |leverage |- |ANSWER-= |% |change |in |operating |income/% |change |in |units |sold
Financial |leverage |- |ANSWER-arises |from |use |of |debt; |more |heavily |indebted |companies |(relative |to |
the |size |of |the |company) |have |more |financial |leverage.
Degree |of |financial |leverage |- |ANSWER-= |% |change |in |net |income/% |change |in |operating |income
Total |leverage |- |ANSWER-combines |operating |leverage |and |financial |leverage.
