Test 1 Flashcards
Terms (21 cards)
Controller
Handles cost and financial accounting, tax payments and management info systems
Treasurer
Responsible for managing the firms cash, its financial planning, and long term capital expenditures
Capital structure
A firms capital structure is the mix of debt and equity to be used by the firm to finance operations.
Net Working Capital
is the difference in dollar between current assets and current liabilities
Income statement
measure net income or net loss, and ks calculated by subtracting expenses from revenues
Earnings per share
Net income divided by common stock
Short term solvency
addresses the firms ability to pay bills over the SHORT run without stress
Long term solvency
address the firms long run ability to meet its financial obligations
Asset utilization or turnover rates
determine how efficiently a firm uses its assets generate revenue
Profitability ratios
determine how efficiently a firm manages its operations to generate net income
Market Value Ratios
calculate certain measures based on information outside of the financial statements
market cap
represents the total value of a company or stock. For example 15,000,000 outstanding shares and a share price of $20 means the market cap is 15,000,000x$20=$300,000,000
Commodity markets
markets where raw or primary goods are exchanged. Physical, interchangeable, and sellable
RRSP
stocks, bonds, mutual funds, and insurances qualify as RRSPs. the amount one could put in is based on a % of their earned income.
TFSA
up to $7000. NEVER taxed
mutual funds
diversification and professional money managment.
Agency problem
CEOs interests are not the same as shareholders
Primary Market
a borrower issues new securities and exchanges these securities for cash from investment bankers
Secondary Market
Quest trade, wealth simple. New York stock exchange
Third Market
OTC ( over the counter) which where BONDS are sold. 2-3 times bigger than than stock market
