Session 1 - Chapter 13 * What is the definition of capital market efficiency? An efficient capital market (EMH) is one in which stock prices fully reflect available information (i.e. stock market prices are good estimates of underlying intrinsic value). * What conditions generally lead to market efficiency? * Rationality * Independent Deviations * Arbitrage * What are the three forms of market efficiency? * Weak form * Security
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of Long-Term Debt Percentage of total assets Total Assets Ratio = Total Assets provided by creditors Long-term Debt to Long-term Debt +Current Portion of Long-Term Debt Relative investment of long-term Share holders’ Equity Ratio = Shareholders’ Equity creditors versus shareholders in a business. Interest Net Income Before Taxes + Interest Expense Coverage Ratio= Interest Expense Profitability Analysis Net
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Dividend Policy at FPL Group, Inc Case Q1) Why do firms pay dividends? What, in general, are the advantages and disadvantages of paying cash dividends? Ans: The purpose of dividend payouts is to return wealth back to the company shareholders instead of using it for operations. Dividends provide investors with regular income from their investments and act as an incentive to continue or start investing in the company. The company’s share price will drop in relation to the dividend payout
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Individual assignment “Analytic system of indicators for Business Diagnostic of Arcelor Mittal” Introduction ArcelorMittal is the world’s leading steel and mining company. Guided by a philosophy to produce safe, sustainable steel, it is the leading supplier of quality steel products in all major markets including automotive, construction, household appliances and packaging. ArcelorMittal is present in 60 countries and has an industrial footprint in 19 countries. Since its inception, ArcelorMittal
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05-0494040 (I.R.S. Employer Identification No.) 02895 (Zip Code) (401) 765-1500 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Exchange Act: Common Stock, par value $0.01 per share Title of each class New York Stock Exchange Name of each exchange on which registered Securities registered pursuant to Section 12(g) of the Exchange Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined
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Chapter 10 Discussion Questions 1. The valuation of financial assets is based on the required rate of return to security holders. This, in turn, becomes the cost of financing (capital) to the corporation. 2. The valuation of a financial asset is equal to the present value of future cash flows. 3. Because BCE, Inc. has less risk than Air Canada, BCE, Inc. has relatively high returns and a strong market position; the latter firms have had financial difficulties. 4. The three
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PepsiCo Publicly Traded Company Marcella Holloway XACC/290 Principles of Accounting I October 3, 2015 Instructor, Eileen Matson •What are the company’s total assets at the end of its most recent annual reporting period? Why is this important? PepsiCo total assets at the end of June 30, 2015 was $72.26 billion. www.ycharts.com/companies/PEP/assets A company’s total asset is important, it allows for the company to be able to account for total assets for the shareholders of the company.
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Financial Accounting and Information Systems Exam 2 Fall 2010 True/False (1 point) 1) According to GAAP revenue recognition criteria, in order for revenue to be recognized on the income statement, it must be earned and realized (realizable).T 2) Realized gains and losses on investments classified as trading securities are reported in a company's net income in the period that they are realized. 3) Accounts receivable (net) reported in the current asset section of a company's balance
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Financial Management includes the following 5 functions * Financing function- raising capital to support firms operations and investment programs * Capital budget function- selecting the best projects in which to invest firm resources, based on a consideration of risks and return * Financial management function- managing firms interna; cash flows and its capital structure to minimize the financing costs and ensure that the firm can pay its obligations when due * Corporate goverance
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concerned with the recognition of revenue arising in the course of the ordinary activities of the enterprise from -- the sale of goods, -- the rendering of services, and -- the use by others of enterprise resources yielding interest, royalties and dividends. 2. This Standard does not deal with the following aspects of revenue recognition to which special considerations apply: (i) Revenue arising from construction contracts;6 (ii) Revenue arising from hire-purchase, lease agreements; (iii) Revenue arising
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