, liquidity - correct answers ability of asset to be quickly converted to cash with little or no loss of value
liquidity trade off - correct answers liquid assets reduce probability of financial distress but yield smaller returns
financial decision of fixed assets - correct answers capital budgeting decision
financial decision of current assets and current liabilities - correct answers working capital decision
financial decision of debt and equity - correct answers capital structure decision, dividend policy/pay out decision
do we want to look at market or book value? - correct answers market
Dividend payout ratio - correct answers dividends paid/ net income
retention ratio/ plowback ratio - correct answers 1-DPR, % of net income that is retained
earnings per share - correct answers net income/ shares outstanding
dividends per share - correct answers dividends paid/ shares outstanding
EBIT - correct answers earnings before interest and taxes, equals operating income
EBITDA - correct answers earnings before interest and taxes and depreciation expense
EBT - correct answers earnings before interest and taxes - interest expense
NOPAT - correct answers EBIT-taxes : EBIAT
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