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