Fin301 - Study guides, Class notes & Summaries

A general partnership has which of the following? 1. Each owner has unlimited liability for all firm debts. 2. It is expensive to form. 3. It is difficult to transfer ownership. 4. Large amounts of cash can be raised easily. - Answer-1 & 3 Someone other than an owner or a creditor who potentially has a claim of the cash flows of a firm - Answer-Stakeholder A corporation is a distinct ______ entity. It can have a name and take advantage of the legal powers of natural persons. - Answer-l...

What is finance - Answer-the study of how and under what terms funds are allocated between those with excess funds and those who need funds. Primary Areas of Finance: - Answer-1. corporate finance 2. investments and valuation 3. capital markets and financial institution Primary Areas of Finance: Corporate Finance (or Business Finance, or Financial Management) - Answer-how companies raise and invest money and manage their financial resources Primary Areas of Finance: Investments and v...

balance sheet - Answer-provides a snapshot of a firm's financial position at one point in time. income statement - Answer-summarizes a firm's revenues and expenses over a given period of time. statement of retained earnings - Answer-reconciles the firm's earnings with its balance sheet retained earnings Connects two statements statement of stockholders equity - Answer-shows how much of the firm's earnings were retained, rather than paid out as dividends. statement of cash flows ...

The primary role of financial markets is to [blank1] the flow of funds from individuals and businesses - Answer-facilitate Which informational form takes all information contained in past price movements is reflected in current market prices? a)Weak Form b)Semi Strong Form c)Strong Form - Answer-a)Weak Form If you have private information, under which informational form can you make excess returns? a)Semi Strong Form b)Weak Form c)Strong Form - Answer-a)Semi Strong Form The o...

Uptown Markets is financed with 45 percent debt and 55 percent equity. This mixture of debt and equity is referred to as the firm's: - Answer-capital structure. Theo's BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these accounts as referred to as: - Answer-working capital management The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict? - Answer-Agency Working capital managemen...

Time Line - Answer--an important tool used in time value analysis -a graphical representation used to show the timing of cash flows Future Value (FV) - Answer-The amount to which a cash flow or series of cash flows will grow over a given period of time when compounded at a given interest rate Present Value - Answer-The value today of a future cash flow or series of cash flows Compounding - Answer-The arithmetic process of determining the final value of a cash flow or series of cash flo...

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FIN 301 Penn State World Campus Final Excel project Scenario: Tom Jones, the CFO for the firm PSUWC Energy, LLC, woke up with a start at 4:00 am on July 2, 2012, due to his phone ringing. It was his senior financial analyst, vacationing in Europe, calling with bad news. Tom was supposed to present his project evaluation, at the end of the week, for the Board's proposal that they invest in new equipment that generates electricity, using a new nuclear technology. His staff of financial analysts h...

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