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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...

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...

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 ...

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...

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...

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 ...

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...

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...

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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...

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...

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...

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...

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...