Estherlinasmith

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 ...

Corporate Finance - -The study of ways to answer these questions: Where will you get the long term financing for those investments? Will you bring in other owners or will you borrow the money? How will you manage your everyday financial activities such as collecting from customers and paying suppliers? What long term investments should you take on? That is, what lines of business will you be in what sorts of buildings, machinery, and equipment will you need? -Stockholders (owners) ar...

Globalization refers to the removal of barriers to free trade and the closer integration of national economies. - -True -The production of goods and services has become highly globalized due to emergence of large multinational companies. - -True -Country risk has no effect on a firm's cash flows. - -False -Stockholder wealth maximization is the accepted goal for firms in all countries around the world. - -False -The European manager's goal is to earn as much wealth as possible for ...

Globalization refers to the removal of barriers to free trade and the closer integration of national economies. - -True -The production of goods and services has become highly globalized due to emergence of large multinational companies. - -True -Country risk has no effect on a firm's cash flows. - -False -Stockholder wealth maximization is the accepted goal for firms in all countries around the world. - -False -The European manager's goal is to earn as much wealth as possible for ...

Which one of the following terms is defined as the management of a firm's long-term investments? A. working capital management B. financial allocation C. agency cost analysis D. capital budgeting E. capital structure - -D. capital budgeting -Which one of the following terms is defined as the mixture of a firm's debt and equity financing? A. working capital management B. cash management C. cost analysis D. capital budgeting E. capital structure - -E. capital structure -W...

What is Corporate Finance? - -No matter what type of business you started, you would always HAVE to answer these 3 Important questions relating to Finance: -What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 1* - -1. *WHAT* long term investments should you take on? EX: Line of Business and Buildings, Machinery, Equipment. -What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 2* - -2. *WHERE* will you get the long term financing to pay for...

What is Corporate Finance? - -No matter what type of business you started, you would always HAVE to answer these 3 Important questions relating to Finance: -What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 1* - -1. *WHAT* long term investments should you take on? EX: Line of Business and Buildings, Machinery, Equipment. -What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 2* - -2. *WHERE* will you get the long term financing to pay for...

balance sheet --financial statement that reflects a firm's accounting value on a particular date -shareholders equity --the residual value of a corporation after all debts have been paid. consists of paid in surplus, common stock, and retained earnings -net working capital --the difference between a firm's current assets and its current liabilities. accounts payable, cash, inventory -income statement --reflects a firms performance over a period of time -earnings per share --amount ...

balance sheet --financial statement that reflects a firm's accounting value on a particular date -shareholders equity --the residual value of a corporation after all debts have been paid. consists of paid in surplus, common stock, and retained earnings -net working capital --the difference between a firm's current assets and its current liabilities. accounts payable, cash, inventory -income statement --reflects a firms performance over a period of time -earnings per share --amount ...