Corporate Finance Notes * Chapter One: Introduce to Corporate Finance 1. Three Questions: A. What Long-term asset should be invested? Capital Budgeting B. How to raise cash for capital expenditures? Capital Structure C. How to manage short-term cash flow? Net Working Capital 2. Capital Structure: Marketing Value of Firm = MV of Debt + MV of Equity 3. Finance perspect and Accountant perspect: Finance: Cash Flow ! Accountant: A/R means profit ! 4. Sole proprietorship
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a. Acid-test ratio: (Cash + Accounts receivable) ÷ Total Current Liabilities = ($325+$3599) ÷ $3945 =0.99 Interpretation: The acid-test ratio assumes that all current liabilities are pay able immediately and that the debtor will convert the mast liquid assets to cash, the most liquid assets can cover current liabilities. b. Return on Assets: [Net income + Interest expense*(1-Tax rate)] ÷ Average total assets =[$1265+$78(1 - .40)] ÷ [($4,792
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compute ratios; show your computations for all ratios on this tab and also include your commentary. The financial statements used to calculate these ratios are available in Appendix A and Appendix B of your textbook. Interpretation and comparison between the two companies' ratios (reading the Appendix of Chapter 13 will help you prepare the commentary). Kohl's JcPenny The comparison of the ratios is an important part of the project. A good approach is to briefly explain what the ratio tells us
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financial statement analysis. Describe and use the following four analytical techniques: horizontal analysis, trend analysis, vertical analysis, and ratio analysis. Explain the importance of comparisons and trends in financial statement analysis. Prepare and interpret common-size financial statements. Define and compute the various financial ratios discussed in the chapter. CONTEMPORARY INTERIORS TO GO NATIONAL Chicago, IL—Contemporary Interiors, a Chicago tradition in Scandinavian furniture and
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FINANCIAL ANALYSIS PROJECT ON ALCOA INCORPORATED Dr. Margaret Garcia Associate Professor of Finance Saint Francis University FINANCIAL ANALYSIS OF ALCOA INC. FINANCIAL ANALYSIS OF ALCOA INC. By Adedotun (Tosin) Adeluyi Senior, Accounting, Finance, and Management Information System Majors Saint Francis School of Business February 22, 2011 Current Events The history of Alcoa Incorporated can be traced back to Charles Martin Hall’s discovery of finding a feasible way of
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Table of contents Title | Pages | 1.0 Introduction | 3 - 8 | 2.0 Financial Ratio Analysis | | 2.1 Liquidity Ratio | 9 - 12 | 2.2 Profitability Ratio | 12 - 17 | 3.0 Computation and Interpretation of liquidity ratio and profitability ratio - Dijaya Corporation Berhad | 18 - 19 | 4.0 Computation and Interpretation of liquidity ratio and profitability ratio - Encorp Berhad | 20 - 21 | 5.0 Comparison of companies’ liquidity positions and performances | 22 - 25 | 6
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perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication Company. The objective and conclusion of this analysis will be, if is either good or not to invest in the company. The analysis will be base on the most important ratios as, Liquidity, Profitability, and Solvency Ratios. Financial Analysis - AT&T Inc. Company Overview AT&T Inc. is the
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The purpose of this article is to explain a step-by-step process that can assess whether a firm will remain in balance over the next two to three years. Various financial ratios will be discussed as a critical aspect of this process analysis. A case study of assessing the future health of the Harley Davidson, Inc. using a ratio analysis is included in the article to explain the step-by-step process used by managers to ensure a firm’s success. A great analogy comes to mind when considering the
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Ratio Analysis Self-Paced Tutorial Online tutorials for mini classes at: http://ecampus.bentley.edu/dept/hcfs/tradingroom 2003© Hughey Center for Financial Services. All Rights Reserved. INTRODUCTION.............................................................................................................................................. 3 How-to’s and Goals of this tutorial: ................................................................................................. 3 What about
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liabilities and assets of a company before providing them a loan. Liabilities are the what the company already owes and the assets are what the company is going to use to generate cash to repay the loan. There are several ratios that can be used to provide details regarding the current financial health of Custom Snowboards and the expected future earning potential of the company. Current ratio - The most commonly used ratio is the current ratio, this equals the current assets divided by the current
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