Financial institutions, International Finance. Agency problem- inherent conflicts of interest Formals Assets=Liabilities + Shareholders’ Equity, Income =Revenues – Expenses, Current Ratio=Current Assets/Current Liabilities, Quick ratio or acid-test ratio= (Current Assets – Inventory)/ Current Liabilities Cash Ratio= Cash/ Current Liabilities Total debt= (Total Assets- Total Equity)/ Total Assets, Debt/equity ratio= Total Debt/ Total Equity, Equity Multiplier= EBIT/Interest, Cash coverage ratio= (EBIT
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A STUDY ON FINANCIAL RATIOS OF MAJOR COMMERCIAL BANKS Dr. Y. Sree Rama Murthy Director Research & Senior Faculty Member College of Banking & Financial Studies Sultanate of Oman RESEARCH STUDIES 2003 _______________________________________________________ College of Banking & Financial Studies PO Box 3122, PC 112 Sultanate of Oman CONTENTS Chapter 1 INTRODUCTION Chapter 2 PROFITABILITY MANAGEMENT RATIOS Chapter 3 LIQUIDITY RISK MANAGEMENT Chapter 4 INTEREST RATE
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structure is called: a. the capital asset pricing model. b. MM Proposition I. c. MM Proposition II. d. the law of one price. e. the efficient markets hypothesis. Difficulty level: Easy MM PROPOSITION II c 3. The proposition that the cost of equity is a positive linear function of capital structure is called: a. the capital asset pricing model. b. MM Proposition I. c. MM Proposition II. d. the law of one price. e. the efficient markets hypothesis. Difficulty level: Medium INTEREST TAX
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Corporations: Dividends, Retained Earnings, and Income Reporting ASSIGNMENT CLASSIFICATION TABLE Brief Exercises 1, 2, 3 A Problems 1A, 2A, 3A, 4A, 5A B Problems 1B, 2B, 3B, 4B, 5B Study Objectives 1. Prepare the entries for cash dividends and stock dividends. Identify the items reported in a retained earnings statement. Prepare and analyze a comprehensive stockholders’ equity section. Describe the form and content of corporation income statements. Compute earnings per share. Questions 1, 2, 3
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organizational form should a business use? • Where should the business locate? • How should business acquisitions be structured? • How should the business compensate employees? • What is the appropriate mix of debt and equity for the business? • Should the business rent or own its equipment and property? • How should the business distribute profits to its owners? One must consider all transaction costs (including taxes) to evaluate the merits
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commodities such as oil. It owned a chain of restaurants and retailing outlets. Azmi, the new Chief Executive Officer in November 2009 had been assigned by the chairman to plan and execute a turnaround programmed for the company due the besieged with problems ever since they took over its operation from the previous owner. Addition, the sales figures is on a decline but their operating costs are up. So, the chairman directed Azmi to check what is happening to the company credit control and inventories
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Mutual Fund Industry with specific reference to equity growth oriented schemes. ➢ To compare the performance of 5 open ended equity mutual fund schemes with various financial parameters like Treynor, Jenson and Sharpe Model. ➢ To assess the above-mentioned schemes in-depth and suggest the investors for the same. ➢ To assign ranks to the selected mutual fund schemes and suggest suitable scheme to the investors on the basis of risk and return. 2. Scope of the Study:- ➢ In this
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1 Return on Capital (ROC), Return on Invested Capital (ROIC) and Return on Equity (ROE): Measurement and Implications Aswath Damodaran Stern School of Business July 2007 2 ROC, ROIC and ROE: Measurement and Implications If there has been a shift in corporate finance and valuation in recent years, it has been towards giving “excess returns” a more central role in determining the value of a business. While early valuation models emphasized the relationship between growth and value
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by $ 90,000 An incorrect inventory balance causes the reported value of assets and owner's equity on the balance sheet to be wrong. This error does not affect the balance sheet in the following accounting period, assuming the company accurately determines the inventory balance for that period. Errors in inventory do not affect the Liabilities that Loch Ness Ltd has, instead only the owner’s equity and subsequently Assets. Retained earnings are also affected. Below is a list of tables that shows
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Lecture 7: Valuation of Shares (Fundamental Analysis) Introduction Fundamental Analysis It helps us determine the value of a share by studying the intrinsic factors such as earnings potential, dividend growth, required rate of return, and factors relating to company, the industry, and the economy. Analysis of a company’s financial data helps us to predict the movement of that company's stock price. A potential (or current) investor uses fundamental analysis to examine a company’s operations and
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