These ratios assess a firms ability to pay its bills as they come due.
What are Liquidity Ratios?
100
The number of years needed to recover the initial cash outlay required to make the investment.
What is Payback Period
100
The study of how people and businesses evaluate investments and raise capital for investments.
What is Finance?
100
Interest earned on the principal amount.
What is simple interest?
100
The weighted average of the required returns of the securities that are used to finance a firm.
What is the Weighted Average Cost of Capital or WACC?
200
Calculated by deducting Inventory from Current Assets and dividing the result by Current Liabilities
What is the Acid Test or Quick Ratio?
200
A widely used method of evaluating potential investments, which can produce multiple answers when unconventional cash flows are used.
What is IRR or Internal Rate of Return
200
Sole Proprietorship, General Partnership and Corporation
What are the three types of business organizations?
200
The value of a sum of money compounded at a given interest rate for a specific period of time.
What is Future Value?
200
The price of one currency stated in terms of another.
What is the Exchange Rate?
300
These Ratios examine how a firm's shares are valued in the stock market.
What are Market Value Ratios?
300
This is where the cost-benefit ratio is equal to the present value of an investment's future cash flows divided by its initial cost
What is The Profitability Index?
300
Where an investor places an order to buy or sell a debt or equity security, such that the issuer receives no money.
What is the secondary market?
300
Regular cash payments that occurs over a period of time.
What is an Annuity?
300
Financing which flows with the volume of sales activity during normal business operation that requires no additional assistance from lenders or creditors. The most common resources for this kind of financing include accounts payables and accruals.
What is Spontaneous Financing?
400
This ratio is calculated by dividing Net Income by Common Equity
What is Return on Equity or ROE?
400
This investment decision technique was developed to overcome problems with a related technique.
What is MIRR or Modified IRR
400
Cash Flows are the Source of Value
What is Principle # 3 of the four Principles of Finance
400
A loan which is paid off in equal payments.
What is an Amortized Loan?
400
The process of buying and selling in more than one market to make a riskless profit.
What is Arbitrage?
500
These ratios indicate how the firm has financed the purchase of assets using debt and equity funds.
What Capital Structure Ratios?
500
Known as the "holy grail" of criteria for evaluating new investment opportunities, this is calculated as the difference between the present value of cash inflow and cash outflows.
What is NPV or Net Present Value
500
Maximize Shareholder Wealth
What is the main goal of financial managers?
500
An annuity that has no maturity.
What is a Perpetuity?
500
The computation of an exchange rate for a currency from the exchanges rates of two other currencies.