Exam (elaborations)

Finance Exam 1 (Chapters 1-4)

2 views 0 purchase

Course
Finance

Institution
Finance

[Show more]

Preview 2 out of 7 pages

View example

Uploaded on December 8, 2023
Number of pages 7
Written in 2023/2024
Type Exam (elaborations)
Contains Questions & answers

finance
finance exam 1 chapters 1 4

CA$12.24

Added

Add to cart Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

Finance Exam 1 (Chapters 1-4)

4 Basic Areas of Finance - Corporate Finance

Financial Institutions

Investments

International Finance

Financial Institutions - Companies that specialize in financial matters.

- Banks

- Brokerage Firms

- Insurance Companies

What is involved in the Investments side of Finance? - Stocks and Bonds

Valuing Financial Assets

Capital Budgeting Decision - What long-term investments should the business take on?

Capital Structure Decision - How should we pay for your assets?

Debt or Equity?

Working Capital Management Decision - How do we manage the day-to-day finances of the firm?

3 Forms of Business Organization - Sole Proprietorship

Partnership

Corporation

What is the Goal of Financial Management? - -Maximize the current value per share of the companies
stock

, - Maximize the value of the existing owners' equity

What is the Agency Problem - Conflicts between the Principal (Stockholder) and Agent (Managers)

What is another name for Principal? - Stockholder

What is another name for Agent - Manager

What is the Balance Sheet? - Snapshot of the firms Assets and Liabilities at any given point

Balance Sheet Identity (Equation) - Assets = Liabilities + Shareholders' Equity

Debt vs. Equity (Equation) - Shareholders' Equity = Equity - Liabilities

Net Working Capital - Current Assets - Current Liabilities

What is Liquidity? - Speed and ease of conversion to CASH

Book Value vs. Market Value - Book Value: The BALANCE SHEET value

Market Value: The TRUE value in the market

Income Statement Equation - Net Income = Income - Expenses

What is the income statement? - Measured performance over a specidied period of time

Noncash Items - Expenses charged against revenue that do not affect cash flow

AKA Depreciation

GAAP Matching Principle - -Recognize revenue when it is fully earned

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller otebamanyuru. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$12.24. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

71184 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling