Chapters 1 & 2
This type of business organization has to pay taxes on its own profit, as well as it's shareholders. et. Al. "Double Taxed"
What is a Corporation?
This theorem (although pretty factual) states that money now is worth money than the same amount in the future.
What is Time Value of Money?
This is a set of equal cash payments, that have a finite end. Examples of this are car payments, home mortgages, and loans.
What is an Annuity?
The statement that shows a company's assets, liabilities, and stockholders' equity at a given point in time.
What is the Balance Sheet?
The exact opposite of compounding. The term for looking at a timelines and bring the FV back to the PV.
What is discounting?
These two statements are published by a public corporation every quarter, and yar. They attest to financial accuracy and include the 4 accounting sheets.
What are 10-K/10-Q?
This form of interest is most commonly used when doing problems in finance, as it builds upon a previous compounding period.
What is Compound Interest?
Annuity that never stops. It is the Present Value of an infinite number of equal payments.
What is a Perpetuity?
This ratio shows a company's profit (net income) per dollar of assets owned.
What is Return on Assets?
In a Growing Perpetuity, Billybob receives $450 each year at an interest rate of 9%. However, the growth rate is 3%. Calculate the PV.
What is $7,500?
This statement shows the flow of cash for an organization, including operating, financing, and investing activates. It is set for the period of one year.
What is Statement of Cash Flows?
Buying and selling securities, with no risk at all. Illegal in most countries and their economies.
What is Arbitrage?
Fitzgerald won a Perpetuity that gives his family equal payments of $10,000 invested at 7%, infinitely. Find the Present Value of this cash flow stream.
What is $142,857.14?
The 4 accounting statements must be set to these standards and are signed by the CFO and CEO.
What is GAAP? (Generally Accepted Accounting Principles)
What is $200,000?
The Market Capitalization of Nvidia Corporation is $35.4 Million, while its Book Value of Equity is $18.8 Million. Find the Market to Book Ratio.
What is 1.88?
Alberto wants $1,000 in 3 years. His interest rate is 10%, therefore he needs this much invested now. (PV)
What is $751.38?
Boris won a 3-year Annuity that pays $100 annually, receiving 10% interest. Find the PV of these Cash Flows.
What is $248.68?
Think back to Fitzgerald. If his award's 10th payment is same, what is the present value of the award up until the 10th year?
What is $77,704.82?
You start saving for retirement at the end of this year, for 25 years. Each deposit is $1000, and the interest rate on your deposit is 6%. After 30 years (end), you deposit the accumulated value of your investment into another account. You start saving the same amount for 5 years with 7% interest with an unknown ending future balance.
What is $100,821.31
A firm Market Value of Equity is valued at $186,220. It burdens current debt at $44,862 and has Cash reserves on-hand of $92,695. Calculate the firms Enterprise Value.
What is $138,387?
Jack's initial investment of $100 gains interest at 8%, however it will be compounded monthly. He will keep this money in the bank for 4 years. Find Jack's FV.
What is $137.56?
Heraldo won $30 Million in the MGM Grand Casino. He can either take $15,000,000 now, or $1,000,000 now and $1,000,000 each year after for 30 years. Find the value of the second option.
What is $12,158,406?
Jimbo has a Perptuity that will begin payments after year 5. The cashflow is $30,000, and the interest rate on his investment is 8%. He wants to know the Present Value. Use this information to calculate present value of the function.
What is 275,636
In a Growing Perpetuity, Billybob receives $450 each year at an interest rate of 9%. However, the growth rate is 3%. Calculate the PV.
What is $7,500?