MGMT 310 exam 1

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1
Capital Budgeting
Manging and planning irms long term investment
2
Capital Structure
How firms raise money to pay for investment
3
Working capital managment
Manageing short term and long term assets
4
Sole Proprietorship
Most common, easiest to start, no seperation between firm and owne, unlimited personal liability, difficult to transfer ownership
5
Generald Partner
have unlimited liability
6
Limited partners
not financially liable
7
Net Working capital equation
current assets - current liabilities
8
Earnings per share
net income/oustanding shares
9
Current Ratio
current assets/ current liabilities
10
Quick (acid-test) Ratio
current assets - Inventory / current liabilities
11
Cash Ratio
cash/ current liabilities
12
total debt ratio
debt/ assets
13
debt to equity
debt/equity
14
equity multiplier
total assets/ equity
15
long term debt ratio
long term debt / long term debt + total equity
16
EBIT
earnings before intrest and taxes
17
times intrest earned
EBIT/interest expenses
18
cash coverage
EBIT + depreciation/ interest expenses
19
profit margin
net income/ sales
20
Return on assets
net income/ total assets
21
return on equity
net income/ total equity
22
PE ration
price per share/ earnings per share
23
Market to book ratio
price per share/ book value per share or market equity / book equity
24
Tobins Q
Market assets/ book assets
25
Enterprise value
market value of stock + book values of liabilities - cash
26
EBITDA ratio
enterprise value / EBITDA
27
Dividend payout ratio
cash dividends / net income
28
retention ratio
retained earnings / net income
29
FV
$C * (1+r)^t
30
t
ln(2)/ r
31
PV
(1/(1+r)^t) * $C
32
r
(fv/Pv)^(1/ t) - 1
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