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[Show more]Characteristics of preferred stock includes 
-dividends in arrears 
-dividends are cumulative 
-higher payoff claim in a BK (has first dibs in a BK) 
-considered "hybrid" (part stock/part bond) 
-no fixed maturity date 
-no voting rights 
-can skip dividend payments 
-dividends don't change year-...
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Add to cartCharacteristics of preferred stock includes 
-dividends in arrears 
-dividends are cumulative 
-higher payoff claim in a BK (has first dibs in a BK) 
-considered "hybrid" (part stock/part bond) 
-no fixed maturity date 
-no voting rights 
-can skip dividend payments 
-dividends don't change year-...
Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? 
False 
 
 
 
Stocks and Bonds are two types of financial instruments. True or False? 
True 
 
 
 
When revenue is matched with cost of sales in an Income statement it is called? 
Matching principle 
 
 
 
Bas...
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Add to cartTrading on the NYSE is executed without a specialist (i.e. a market maker). True or False? 
False 
 
 
 
Stocks and Bonds are two types of financial instruments. True or False? 
True 
 
 
 
When revenue is matched with cost of sales in an Income statement it is called? 
Matching principle 
 
 
 
Bas...
2x sold
Statement of Cash Flows 
Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. 
 
 
 
Cash Flow from Operating Activities (CFO) 
Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets...
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Add to cartStatement of Cash Flows 
Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. 
 
 
 
Cash Flow from Operating Activities (CFO) 
Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets...
Net Income = 
Revenues - Expenses 
 
 
 
Revenues - Cost of Goods Sold (COGS) 
Gross Profit 
 
 
 
 
Gross Profit - Operating Expenses 
EBIT 
 
 
 
EBIT = 
Sales - Costs - Depreciation 
 
 
 
EBIT = 
Operating Profit or Operating Income 
 
 
 
EBIT - Interest Expense = 
Earnings Before Taxes 
 
 
 
...
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Add to cartNet Income = 
Revenues - Expenses 
 
 
 
Revenues - Cost of Goods Sold (COGS) 
Gross Profit 
 
 
 
 
Gross Profit - Operating Expenses 
EBIT 
 
 
 
EBIT = 
Sales - Costs - Depreciation 
 
 
 
EBIT = 
Operating Profit or Operating Income 
 
 
 
EBIT - Interest Expense = 
Earnings Before Taxes 
 
 
 
...
T1 Primary financial markets 
the markets in which securities (stocks and bonds) are first issued. This is where the issuers (the firms) and the buyers (the investors) will engage in an exchange. 
 
 
 
T1 Syndicate 
When a company wants to issue stock, bonds, or other publicly traded securities, it...
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Add to cartT1 Primary financial markets 
the markets in which securities (stocks and bonds) are first issued. This is where the issuers (the firms) and the buyers (the investors) will engage in an exchange. 
 
 
 
T1 Syndicate 
When a company wants to issue stock, bonds, or other publicly traded securities, it...
Initial Outlay 
The total dollar amount to begin a project. 
 
 
 
Cost of Equity 
How much it costs a firm (in percentage terms) to use equity financing. From the investor's perspective, it is what they require given the riskiness/opportunity cost of the company. From the companies perspective, it...
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Add to cartInitial Outlay 
The total dollar amount to begin a project. 
 
 
 
Cost of Equity 
How much it costs a firm (in percentage terms) to use equity financing. From the investor's perspective, it is what they require given the riskiness/opportunity cost of the company. From the companies perspective, it...
Which will be larger: accrual taxes payable or accounting income tax expense 
Accounting tax expense will be higher; actual taxes based on IRS rules will be lower 
 
 
 
Which financial ratios measure "efficiency"? 
Asset turnover and Fixed Asset turnover 
 
 
 
Which ratio is the best measure of ...
Preview 2 out of 9 pages
Add to cartWhich will be larger: accrual taxes payable or accounting income tax expense 
Accounting tax expense will be higher; actual taxes based on IRS rules will be lower 
 
 
 
Which financial ratios measure "efficiency"? 
Asset turnover and Fixed Asset turnover 
 
 
 
Which ratio is the best measure of ...
Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) 
False 
 
 
 
Stocks and bonds are two types of financial instruments (T/F) 
True 
 
 
 
The matching principle in accrual accounting requires that: 
Revenues be recognized when the earnings process is complete and mat...
Preview 3 out of 20 pages
Add to cartTrading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) 
False 
 
 
 
Stocks and bonds are two types of financial instruments (T/F) 
True 
 
 
 
The matching principle in accrual accounting requires that: 
Revenues be recognized when the earnings process is complete and mat...
How can a private firm appropriately maximize shareholder value? 
By making decisions that keep the control of the business with the owners 
 
 
 
Why are American regulators focused on international investing in a global marketplace? 
Because international investing in a global marketplace is the c...
Preview 3 out of 28 pages
Add to cartHow can a private firm appropriately maximize shareholder value? 
By making decisions that keep the control of the business with the owners 
 
 
 
Why are American regulators focused on international investing in a global marketplace? 
Because international investing in a global marketplace is the c...
WGU C214|2023 LATEST UPDATE|GUARANTEED SUCCESS
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Add to cartWGU C214|2023 LATEST UPDATE|GUARANTEED SUCCESS
... 
... 
 
 
 
... 
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00:47 
 
01:25 
Which will be larger: actual taxes payable or accounting income tax expense 
Accounting tax expense will be higher; actual taxes based on IRS rules will be lower 
 
 
 
Which cash flow measures the change in long term assets? 
Cash flow investing...
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Add to cart... 
... 
 
 
 
... 
... 
 
 
 
 
 
 
00:47 
 
01:25 
Which will be larger: actual taxes payable or accounting income tax expense 
Accounting tax expense will be higher; actual taxes based on IRS rules will be lower 
 
 
 
Which cash flow measures the change in long term assets? 
Cash flow investing...
Standardization 
to gain insight when comparing companies & finances 
 
 
 
Flexibility 
ratio analysis is not governed by GAAP; best analysts achieve the greatest benefits 
 
 
 
Focus 
ratios allow for quick discover of area that need investigation 
 
 
 
Liquidity 
ability to meet short-tem oblig...
Preview 1 out of 4 pages
Add to cartStandardization 
to gain insight when comparing companies & finances 
 
 
 
Flexibility 
ratio analysis is not governed by GAAP; best analysts achieve the greatest benefits 
 
 
 
Focus 
ratios allow for quick discover of area that need investigation 
 
 
 
Liquidity 
ability to meet short-tem oblig...
Cost of Capital 
cost that occur in raising capital 
 
 
 
Weighted-Average Cost of Capital (WACC) 
the cost of capital in the rate -of -return terms; 
the rate at which we discount future cashflows 
 
 
 
WACC calculation 
E/MV x Re + P/MV x Rp + D/MV x Rd (1-T) 
 
E= common equity MV= market value...
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Add to cartCost of Capital 
cost that occur in raising capital 
 
 
 
Weighted-Average Cost of Capital (WACC) 
the cost of capital in the rate -of -return terms; 
the rate at which we discount future cashflows 
 
 
 
WACC calculation 
E/MV x Re + P/MV x Rp + D/MV x Rd (1-T) 
 
E= common equity MV= market value...
The goal of the corporation is to: 
maximize stock price 
 
 
 
What makes an efficient market? 
Competitive market, liquidity, transparency 
 
 
 
What is the relationship between risk and required return? 
As risk increases, required return increases. 
 
 
 
What are the 3 main financial statement...
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Add to cartThe goal of the corporation is to: 
maximize stock price 
 
 
 
What makes an efficient market? 
Competitive market, liquidity, transparency 
 
 
 
What is the relationship between risk and required return? 
As risk increases, required return increases. 
 
 
 
What are the 3 main financial statement...
How can a private firm appropriately maximize shareholder value? 
By making decisions that keep the control of the business with the owners. 
 
 
 
Why are American regulators focused on international investing in a global marketplace? 
Because american investors are focused on international investi...
Preview 2 out of 10 pages
Add to cartHow can a private firm appropriately maximize shareholder value? 
By making decisions that keep the control of the business with the owners. 
 
 
 
Why are American regulators focused on international investing in a global marketplace? 
Because american investors are focused on international investi...
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