Dupont formula - Study guides, Class notes & Summaries

ACCT 212 Week 7 Homework – Graded An A+ Preston Stores is authorized to issue 18,000 shares of common stock. During a two-month period, Preston completed these stocktransactions: Question 1 a: Journalize the first transaction. (Record debits first, then credits. Exclude explanations from any journal entries.) Answer 1a: Explanation 1a: We are told that on February 23, the company issued 1,700 shares of $2.00 par common stock for cash of $12.50 per share. Before we can journalize the transactio...

The SEC Securities & Exchange Commission requires public companies to do the following: a. File audited financial statements with SEC b. Change CEOs on a regular basis e. Regulates the Money Supply d. Prohibits foreign bribery a What does the Sarbanes-Oxley Act require companies to do? a. Have a board of directors b. Register all foreign sales c. Make estimated tax payments d. Have internal control audits d If a company produces and sells a product only in the U.S., what international developmen...

Price change based on convexity - Answer- -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - Answer- Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - Answer- [(v-)-(v+)]/[2V0(change in yield)] Future Value - Answer- PV(1+(I/Y)^N) PV - Answer- FV/(1+r)^n PV of perpetuity - Answer- PMT / discount rate Approximate percentage price change of a bond - Answer- (-)(modified duration)(ΔYTM) Nominal Risk F...

CFA Level 2 Exam 115 Questions with Answers 2023 FCFF (using EBITDA) - CORRECT ANSWER FCFF = EBIDTA(1-T) + DEP(T) - Finv - Winv Converting FIFO to LIFO COGS - CORRECT ANSWER FIFO COGS = LIFO COGS - (End LIFO Reserve - Beg LIFO reserve) Engle- Granger Test - CORRECT ANSWER Test whether 2 variables are cointegrated. Regress 1 data series against the other and check residuals for unit root. Steady State of Growth Formula - CORRECT ANSWER growth = Growth Rate TFP/1-(Labor cost in total...

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 matches expenses to revenues recognized. A basic equation for the balance sheet is: - Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? - Because the other statements ar...

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 matches expenses to revenues recognized. A basic equation for the balance sheet is: - Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? - Because the other statements ar...

CFA Level 1 FRA Exam 96 Questions with Answers Current Ratio - CORRECT ANSWER Current Assets divided by current liabilities Quick Ratio - CORRECT ANSWER Cash plus marketable securities plus receivables divided by current liabilities Cash Ratio - CORRECT ANSWER Cash plus marketable securities divided by current liabilities Defensive Interval Ratio - CORRECT ANSWER Cash plus marketable securities plus receivables divided by average daily expenditures Cash Conversion cycle - CORREC...

CORPORATE FINANCE THIRD EDITION JONATHAN BERK STANFORD UNIVERSITY PETER DEMARZO STANFORD UNIVERSITY Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo To Rebecca, Natasha, and Hannah, for the love and for being there —J. B. To Kaui, Pono, Koa, and Kai, for all the love and laughter —P. D. Editor in Chief: Donna B...

WGU C708 Principles of Finance Pre-Assessment (Answered) 2023 $227 million A company has fixed assets of $509 million, total equity of $218 million, current liabilities of $128 million, and long-term debt of $390 million. What is the total for the company's current assets? a.) $262 million b.) $119 million c.) $128 million d.) $227 million $114.9 million A company has just reported sales of $557 million, costs of goods sold of $150 million, depreciation of $190 million and inter...

Annual Percentage Rate - Answer The annual interest rate that is charged for borrowing money or that is earned through investment. Annuity - Answer A stream of cash flows of an equal amount paid every consecutive period.Go To Annuity Due - Answer A series of equal payments made at the beginning of consecutive periods.Go To Asset Pricing - Answer The process of valuing assets. Auction Market - Answer A secondary market with a physical location and where prices are determined by investors...