BFIN 300 Questions With Solutions
working capital management deals with short term assets and short term liabilities
corporate finance relationship between business decisions and maximizing the value of
the business
agency relationship between managers and shareholders
who has claim of cash f...
working capital management deals with short term assets and short term liabilities
corporate finance relationship between business decisions and maximizing the value of
the business
agency relationship between managers and shareholders
who has claim of cash flows stakeholders
the residual value of the company shareholders equity
financial leverage use of debt in the companys capital structure
matching principle recognizing revenues at time of sale
why do you need ratios to compare financial information
, BFIN 300 Questions With Solutions
liquidity ratios measures the ability to pay debt in the short run without stress (current and
quick ratio)
long term debt ratio long term debt / (long term debt + total assets)
Times interest earned EBIT/ interest expense
Cash coverage ratio (EBIT + Depreciation) / Interest
debt/equity ratio total liability/shareholders equity
Current Ratio/NWC ratio current assets/current liabilties
quick ratio (Current Assets - Inventory) / Current Liabilities
Cash ratio Cash / Current Liabilities
coupon stated interest payment on a bond
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