Liamxavier

capital budgeting - -the process of planning and managing a firm's long-term investments -capital structure - -the mixture of debt and equity maintained by a firm -working capital - -a firm's short term assets and liabilities -sole proprietorship - -a business owned by a single individual -partnership - -a business formed by two or more individuals or entities -corporation - -a business created as a distinct legal entity owned by one or more individuals or entities -agency pr...

The Four Basic Areas of Finance are: - -1. Corporate Finance 2. Investments 3. Financial Markets and Institutions 4. International Finance -What is the focus of corporate finance (3 basic issues)? - -1. What long-term investments should a firm take on? 2. Where will you get the long-term financing to pay for your investment? 3. How will you manage your everyday financial activities such as collecting from customers and paying suppliers? -Capital Budgeting - -The process of planning an...

Three Traditional Fields of Finance - -1. Money and Banking 2. Investments 3. Financial Management -Financial Manager's Decisions - -1. Capital budgeting decisions 2. Financing decisions 3. Working capital management decisions -1. Capital budgeting decisions - -Identifying the productive assets the firms should buy -2. Financing decisions - -Determining how the firm should finance or pay for assets -3. Working capital management decisions - -Deterring how day-to-day financial ma...

Assests - -what the company owns(resources of a company): cash accounts receivable land equipment patent rights -Liabilities - -what the company owes: notes payable accounts payable salaries payable long-term debt -General areas of accounting the course relates too: - -financial statement preparation and reporting financial statement auditing and compliance loosely relates to: internal controls auditing and compliance -financial accountant - -hired by a firm to prepare financ...

Income Sources - -1. Earned - Wages (Most Taxed) 2. Portfolio - Stocks/Bonds 3. Passive - Real Estate (Least Taxed) -Real Estate Types - -1. Owner Occupancy - Live in (Less Risk) 2. Investment - Income 3. Speculation - Appreciation (More Risk) -Appraisal Profession - -1. The Appraisal Foundation (TAF) 2. Appraisal Qualifications Board (AQB) 3. Appraisal Standards Board (ASB) -Professional Designations of Appraisers - -MAI - Commercial SRA - Residential AI-GRS - Appraisal Revi...

capital budgeting process - -the process of identifying and evaluating capital projects (projects where the cash flow to the firm will be received over a period longer than one year) -4 administrative steps of capital budgeting process - -1. idea generation 2. analyzing project proposals (decision to accept/reject) 3. create firm-wide capital budget 4. monitoring decisions and conducting post-audit -5 key principles of capital budgeting process - -1. decisions based on cash flows, not a...

triangle arbitrage - -the act of exchanging through three currencies to exploit a mispriced trio of currency quotes -spot trade - -exchange currency immediately -spot rate - -the exchange rate for an immediate trade -forward trade - -agree today to exchange currency at some future date and some specified price -forward rate - -the exchange rate specified in the forward contract -if the forward rate is higher than the spot rate the foreign currency is what? - -selling at a premium ...

Capital Structure - -The combination of debt and equity used to finance a company's assets and operations. Debt comes in the form of bond issues or loans, while equity may come in the form of common stock, preferred stock, or retained earnings. When analysts refer to capital structure, they are most likely referring to a firm's debt-to-equity (D/E) ratio, which provides insight into how risky a company's borrowing practices are. Usually, a company that is heavily financed by debt has a...

Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10 year policy? - -B. $1,202 -Sherita, age 37, wants to pay no more than $750 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $3.96, what is the largest 15-year term policy she can buy without spending more than $750 annually? - -A. $189,000 -Angelo, age 40, is comparing the premium for a $125,000 whole life...

A key difference between principles and theories is that: A)principles are based on data, whereas theories are based on intuitions. B) principles can be applied to a variety of different situations, whereas theories are specific to only one phenomenon. C) principles tend to be fairly stable over time, whereas theories are expanded and modified based on new research. D)principles provide possible explanations for learning or development, whereas theories simply identify important factors. - -...