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BA 323 Bundled Exams with complete solution
BA 323 Bundled Exams with complete solution
[Show more]BA 323 Bundled Exams with complete solution
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Capital Structure - - the mixture of debt and equity maintained by a firm 
- Two concerns: How much to borrow, least expensive sources of funds for the firm 
Capital Budgeting - - the process of planning and managing a firm's long-term investments 
- Evaluating Time, Size risk of an expenditure 
Wo...
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Add to cartCapital Structure - - the mixture of debt and equity maintained by a firm 
- Two concerns: How much to borrow, least expensive sources of funds for the firm 
Capital Budgeting - - the process of planning and managing a firm's long-term investments 
- Evaluating Time, Size risk of an expenditure 
Wo...
§Perpetuity FORMULA - •PV = PMT/I 
§Sharpe Ratio FORMULA - •(Return - risk-free rate) / standard deviation 
§CAPM FORMULA - •ri = rRF + (rM - rRF)bi 
What is the time value of money? - The concept that money you have now is worth more than 
the identical sum in the future due to its potenti...
Preview 2 out of 14 pages
Add to cart§Perpetuity FORMULA - •PV = PMT/I 
§Sharpe Ratio FORMULA - •(Return - risk-free rate) / standard deviation 
§CAPM FORMULA - •ri = rRF + (rM - rRF)bi 
What is the time value of money? - The concept that money you have now is worth more than 
the identical sum in the future due to its potenti...
time value of money - Adjusting the value of cash flows based on when the cash flows are 
received. 
Future Value - the amount of money in the future that an amount of money today will yield, given 
prevailing interest rates 
Present Value - The value today of a future cash flow or series of cash fl...
Preview 2 out of 10 pages
Add to carttime value of money - Adjusting the value of cash flows based on when the cash flows are 
received. 
Future Value - the amount of money in the future that an amount of money today will yield, given 
prevailing interest rates 
Present Value - The value today of a future cash flow or series of cash fl...
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What is the main goal of the corporation? - To make capital gains for shareholders. Maximize 
value of the firm. 
Who ultimately owns the corporation? What is the relationship between 
shareholders, the board of directors, and management? - Shareholders ultimately own the 
corporation. Management (m...
Preview 2 out of 9 pages
Add to cartWhat is the main goal of the corporation? - To make capital gains for shareholders. Maximize 
value of the firm. 
Who ultimately owns the corporation? What is the relationship between 
shareholders, the board of directors, and management? - Shareholders ultimately own the 
corporation. Management (m...
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