MGMT 310 exam 1

Manging and planning irms long term investment

How firms raise money to pay for investment

Manageing short term and long term assets

Most common, easiest to start, no seperation between firm and owne, unlimited personal liability, difficult to transfer ownership

have unlimited liability

not financially liable

current assets - current liabilities

net income/oustanding shares

current assets/ current liabilities

current assets - Inventory / current liabilities

cash/ current liabilities

debt/ assets

debt/equity

total assets/ equity

long term debt / long term debt + total equity

earnings before intrest and taxes

EBIT/interest expenses

EBIT + depreciation/ interest expenses

net income/ sales

net income/ total assets

net income/ total equity

price per share/ earnings per share

price per share/ book value per share or market equity / book equity

Market assets/ book assets

market value of stock + book values of liabilities - cash

enterprise value / EBITDA

cash dividends / net income

retained earnings / net income

$C * (1+r)^t

ln(2)/ r

(1/(1+r)^t) * $C

(fv/Pv)^(1/ t) - 1