AccountingCoach®.com. Click a Category Below Financial Statements Balance Sheet Income Statement Cash Flow Statement Stockholders’ Equity Financial Ratios Accounting Principles Bookkeeping, Debits and Credits Accounting Equation Adjusting Entries Bank Reconciliation Petty Cash Accounts Receivable and Bad Debts Expense Inventory and Cost of Goods Sold Depreciation Accounts Payable Cost Behavior and Break-even Point Payroll Accounting Standard Costing Accounting Pronouncements Organizations Pages 1 1-2
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Liabilities + Equity 2. Total Assets = Cash + A/R + Inventories + Prepaid Expenses 3. Income Tax – “corporate tax rate” 4. Assets = Liabilities + (C.C. + R.E.) (Retained Earnings) 5. BALANCE SHEET – is divided into 3 sections: assets, liabilities and stock holder’s equity. It provides information about the resources available to management and the claims against those resources by creditors and shareholders. The balance sheet reports the assets, liabilities and equity at a “point
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Accounting Standards Board (IASB). MFRSs Comparison of MPERS and MFRSs 1) Component of financial statement MPERS | MFRs | 1. Components of financial statements: (i) Two statements each for financial position, comprehensive income, changes in equity, cash flows and notes. (ii) No requirement for the 3rd statement of financial position. 2. Choice of one continuous statement or two separate statements for presentation of comprehensive income. No requirement to segregate items of OCI into those
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Executive Summary The purpose of our team’s analysis is to compile a summary of how Ace Repair’s Inc. uses their cost of capital, the components that consist within their cost of capital, the Weighted Average Cost of Capital (WACC), and marginal cost of capital schedule. The reason for doing so is to provide Mr. Naranjo, CFO of Ace Repair, on different ways Ace repair may be able to come up with different weight estimations, in terms of capital structure. Also, our team has been assigned to determine
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Agency Costs, Mispricing, and Ownership Structure* Sergey Chernenko Ohio State University C. Fritz Foley Harvard Business School and NBER Robin Greenwood Harvard Business School and NBER March 2012 Abstract Standard theories of corporate ownership assume that because markets are efficient, insiders ultimately bear all agency costs that they create and therefore have a strong incentive to minimize conflicts of interest with outside investors. We argue that if equity is overvalued, however,
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sinking fund, this because it has the lowest cost over the years. Issuing new stock will cause the number of outstanding common stocks to increase. This might cause depreciation in the stock prices. The flotation cost will increase too, causing the cost of equity to adjust to balance with the number of shares issued. 2. WACC= weight of preferred equity * cost of preferred equity + weight of common equity * cost of common equity + weight of debt * cost of debt * (1-taz x rate) WACC= 10.38%. The
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operating strategy is to produce high quality products through efficient, low-cost and aggressive operation as well as singular management. In detail, the company provides several kinds of snacks to satisfy different type’s customers. The company expands its presence into sporting events, movie theaters and other leisure events to attract customers. An efficient and low-cost operation is achieved by strong control of budgets and costs. Customers are satisfied by companies’ quick react to their requirements
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year in perpetuity. The firm has a cost of equity of 10%, a market value of equity of $750 million and a market value of debt of $500 million (this is also the book value). The debt is perpetual and the after-tax interest rate on debt is 5%. The company has no non-operating activities. a. Estimate the value of the firm and the value of the equity based upon this value. b. Estimate the value of equity, by discounting the cash flows to equity at the cost of equity. c. Now assume that you had been
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t ^^ rives . Customer Equity A company's current customers provide the most reliable source of future revenues and profits. By Katherine N. Lemon, Roland T. Rust, and Valarie A. ZeithamI 20 I MM S p r i n g 2001 C o n s i d e r t h e i s s u e s facing a typical brand manager, product manager, or marketing-oriented CEO: How do I manage the brand? How will my customers react to : r changes in the product or service offering? Should 1 raise price? What is the best way
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..............................................................................................................9 Cash Conversion Cycle..............................................................................................................11 Cost of Capital...........................................................................................................................13 Company Stock value................................. .........................................................
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