Financial Management Financial Forecasting Aug 6, 2010 Table of Contents FINANCIAL FORECASTING...........................................................................................2 Usefulness of Financial Forecasting.........................................................................2 II. Limitations of Financial Forecasting.................................................................2 III. Cases when a company may not find forecasting a justifiable investment......2 IV. Financial
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included: Current assets Noncurrent assets Total assets Current liabilities Noncurrent liabilities Total liabilities Total shareholder equity $ 6,500,000 28,250,000 $34,750,000 $ 4,500,000 13,750,000 $18,250,000 $16,500,000 The summary results of operations for the year ended December 31, 2010, included revenue of $10.7 million and net income of $1.2 million. Shakespeare is planning to issue its financial statements on March 20, 2011. On March 18, 2011, Shakespeare’s management will evaluate new
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included: Current assets Noncurrent assets Total assets Current liabilities Noncurrent liabilities Total liabilities Total shareholder equity $ 6,500,000 28,250,000 $34,750,000 $ 4,500,000 13,750,000 $18,250,000 $16,500,000 The summary results of operations for the year ended December 31, 2010, included revenue of $10.7 million and net income of $1.2 million. Shakespeare is planning to issue its financial statements on March 20, 2011. On March 18, 2011, Shakespeare’s management will evaluate new
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creditor and in case of default, he has a prior claim on firm assets over the equity-holder. The equity holder has a residual claim to assets and income. He can receive funds only after other claimants are satisfied. Income is in terms of dividends, the amount and timing of which are not certain. 3) What is the basic principle in determining the price of a financial asset? The basic principle is that the price of any financial asset is equal to the present value of its expected cash flow, even
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Chapter: Working Capital Management 1.Definition of Working Capital: 1.The capital which is required to finance current assets is called working capital. 2. That is in operating daily business of the firm effectively, some resources are needed and the capital which are needed to finance, these resources is called working capital 3. “Working capital may be defined as all the shot term assets used in daily operation”—John. J Harpton. 4. Short term assets of a firm means cash money, short-term securities
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and review their respective strengths and weaknesses. 3. Describe the typical organization of the financial function in a large corporation. 4. Explain why maximizing the current value of the firm’s stock price is the appropriate goal for management. 5. Discuss how agency conflicts affect the goal of maximizing stockholder wealth. 6. Explain why ethics is an appropriate topic in the study of corporate finance. I. Chapter Outline 1.1 The Role of the Financial Manager A. It’s
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Chapter 3 CASH FLOWS AND FINANCIAL ANALYSIS FOCUS The first half of the chapter is focused on cash flow in business. The emphasis is on understanding where cash comes from, what it's used for, and how to get that information out of financial statements. The second half of the chapter deals with financial analysis. A series of ratios are presented along with discussions of the kinds of problems they're designed to illuminate. Practical issues like the interpretation of a long collection
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Chapter 3 CASH FLOWS AND FINANCIAL ANALYSIS FOCUS The first half of the chapter is focused on cash flow in business. The emphasis is on understanding where cash comes from, what it's used for, and how to get that information out of financial statements. The second half of the chapter deals with financial analysis. A series of ratios are presented along with discussions of the kinds of problems they're designed to illuminate. Practical issues like the interpretation of a long collection
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Current Liabilities and Contingencies Current Liabilities IAS 1, Presentation of Financial Statements, requires liabilities to be classified as current or noncurrent. Current liabilities are those liabilities that a company: a. expects to settle in its normal operating cycle, b. holds primarily for the purpose of trading, c. expects to settle within twelve months of the balance sheet date, or d. does not have the right to defer until twelve months after the balance sheet date.
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European Union (EU). This Annual Report is presented in euros (EUR), which is the presentation currency of ABN AMRO, rounded to the nearest million (unless otherwise stated). All year-end averages in the Annual Report are based on month-end figures. Management does not believe that these month-end averages present trends materially different from those that would be presented by daily averages. Certain figures in this document may not tally exactly due to rounding. In addition, certain percentages in
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