Task: 3 A. Prepare a summary report in which you do the following: A1. Recommend a capital structure approach that maximizes shareholder return. Capital Structure: “Capital structure is the manner in which a firm’s assets are financed; that is, the right-hand side of the balance sheet. Capital structure is normally expressed as the percentage of each type of capital used by the firm debt, preferred stock, and common equity.” (Capital Structure Decision, 2002) Capital structure
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revenue, advance payments, taxes payable, postretirement liabilities, and other accruals of operating expenses Operating Liabilities Obligations that arise from financing activities--examples are short- and long-term debt, bonds, notes, leases, and the current portion of long-term debt Financing Liabilities 3-6 3-7 Liabilities Classification Current (short-term) Liabilities Obligations whose settlement requires use of current assets or the incurrence of another current
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CHAPTER 15 LEASES Overview In the previous chapter, we saw how companies account for their long-term debt. The focus of that discussion was bonds and notes. In this chapter we continue our discussion of debt, but we now turn our attention to liabilities arising in connection with leases. Leases that produce such debtor/creditor relationships are referred to as capital leases by the lessee and as either direct financing or sales-type leases by the lessor. We also will see that some leases do not
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Why is this? There are many more pros when individuals decide to buy a home. That is why buying a home is a better option than renting an apartment. Jumping right into the first home one sees is also not the proper way to buy a home. Much time and research needs to be done and many things taken into consideration before deciding the best decision. Do I want to have a landlord, or be the landlord? How much can I afford if I choose to buy a home? Where do I want to be located and what style home am I
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FINAL EXAM STUDY GUIDE The final exam consists of 100 multiple-choice questions from the information presented in Chapter 1 through Chapter 13. Each question is worth 2.5 points. This study guide indicates the items you should review before taking the exam. GOOD LUCK! CHAPTER 1 1. Know the 3 forms of business entities 2. Know the definitions of revenues and expenses 3. Know the difference between internal and external users 4. FASB – responsible for GAAP (accounting principles)
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either equity instruments or liability instruments. The measurement date for estimating the fair value of equity instruments is the grant date; the measurement date for liability instruments is the settlement date. Different rules also apply to public vs. private companies depending on the type of award instrument. (Executive summary, Paragraph 2) http://www.journalofaccountancy.com/Issues/2007/Apr/ARoadMapForShareBasedCompensation.htm Three features to help identify a share based transaction
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Introduction Every business requires funds to operate. A company may need money to expand its business, buy assets, pay wages, or pay its debt. Others may need funds to cover the cost of unforeseen events such as accidents or natural disasters. The difficulties in obtaining these funds constitute one of the major challenges in running a business. The two major sources of business finance are internal and external funding. This paper examines the differences between internal and external sources
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With the sales growth and expected continual growth in Europe, Custom Snowboards, Inc. is considering an expansion into Europe. The company has two options for expansions; to build a new manufacturing facility or to merge/acquire the operations of an already established European manufacturer called European Snow Fun. In order for an acquisition to work, the company would need a loan from the bank for one million dollars. A1. Looking at the financial aspect of the company, there are a few key
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assigned to button K Having cleared the screen (P), it is now possible to recall the number by pressing J then K It is always possible to recall the last answer from the calculator by pressing & and then x CHARTERED FINANCIAL ANALYST Nominal vs. Effective Interest Rates Calculator Workshop Calculating nominal and effective rates Periodic rate (r) Nominal/stated rate r x Annual no. of periods Effective Annual Rate (EAR) EAR = (1 + r)12/n – 1 Where n = number of months Example:
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|(2.7) Net operating profit after taxes (NOPAT) C K |Answer: c |MEDIUM | |EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have? | | | | | | | | | | |Sales | | | |$1,800.00
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