This refers to current assets minus current liabilities.
What is net working capital?
100
The present value of a project's expected cash flow discounted at the risk adjusted rate.
What is NPV?
100
Current Assets / Current Liabilities
What is the current ratio?
100
= debt rate * (1 - tax rate)
What is the cost of capital?
100
This business entity is the easiest to start without having to file an article of incorporation through the state.
What is sole proprietor?
200
These categories include salary payables, accounts payable, and short term accruals.
What are current liabilities?
200
Defined as the number of years required to recover the funds invested in a project from its operating cash flows.
What is payback period?
200
Total Liabilities / Total Assets
What is Debt to Asset ratio?
200
This represents the additional risk placed on common stockholders as a result of the decision to finance with debt.
What is financial risk?
200
This business entity consist of co owners organizing for the purpose of making a profit.
What is partnership?
300
Accounts expecting to be consumed within a year.
What are current assets?
300
The process of analyzing potential projects.
What is capital budgeting?
300
The current ratio of a company with current assets of $300,000 and current liabilities of $100,000
What is 3?
300
The mix of debt and equity that maximizes the stock price.
What is the firm's optimal capital structure?
300
Sole proprietors typically report their taxes on this type of tax form.
What is Form 1040/Schedule C?
400
A schedule showing projected cash inflows and outflows over a period.
What is a cash budget?
400
The discount rate that forces a project's NPV to equal zero.
What is the internal rate of return (IRR)?
400
The total amount of assets of a company with total liabilities of $300,000 and total stockholder's equity of $250,000.
What is $550,000.
400
This represents the extent to which fixed income securities (debt and preferred stock) are used in the firm's capital structure.
What is financial leverage?
400
This type of business entity limits liability to the shareholders.
What is a corporation?
500
Receivables / (sales/365)
What is DSO or average collection period?
500
___________________ is calculated by dividing the present value of cash inflows by the initial cost so it measures relative profitability.
What is the profitability index?
500
The value of current assets when the current ratio is 2 and current liabilities are $400,000.
What is $800,000.
500
=weight of debt*(1 - tax rate)*cost of debt + weight of common stock*rate of return
What is WACC (weighted average cost of capital)?
500
This type of business entity permits a shareholder the benefit of limited liability protection while allowing the flexibility of being taxed either as a partnership or sole proprietor.