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100
The art and science of managing money
What is finance?
100
Operating Investment Financing
What are the types of Cash Flows?
100
Bank - US Bank Credit Union - CPlant Mutual Fund - Insurance Company - State Farm
What are Financial Institutions?
100
Provides insight into the firm's operating, investment and financing cash flows.
What is a State of Cash Flows
100
Transacts business directly with suppliers and demanders.
What Financial Markets do?
200
Sole Proprietorship, Partnership and Corporation
What are the legal (basic) forms of business organizations
200
Managers place personal goals ahead of corporate goals and it can be minimized by Market Forces and Agency Costs
What is the Agency Problem?
200
Making INVESTMENT and FINANCIAL decisions
What are the key activities of a financial manager?
200
Accounting - Accrual based and gathers information Finance - Cash flow based and makes decisions on that information
What is the differences in finance and accounting?
200
Firm's Financial Position at a given point and time
What is a Balance Sheet?
300
A tax reporting entity that allows certain corporations with 100 or fewer stockholders to choose to be taxed as partnerships
What is a S corporation?
300
Allocation of the Historic Cost of an asset over time.
What is Depreciation?
300
Higher the RECEIVED RISK Higher the EXPECTED RETURN
What is Risk Return trade off?
300
Standards of conduct or moral judgement.
What is Ethics?
300
Income earned through the sale of goods or services. The amount left over from the initial purchase price.
What is Ordinary Income? What is Capital Gain?
400
Reconciles net income earned during a given year, and any cash dividends paid........
What is a Statement of Retained Earnings?
400
Maximize the shareholder's wealth
What is the goal of the financial manager?
400
Cross Sectional Time Series Combined
What are the types of Ratio Analysis?
400
The full amount of interest income is taxable while the 1st 70% of dividend income is excluded from taxes.
How Interest and Dividend Income is treated?
400
Cash flows must be available to meet obligations for a firm as they come due.
What role do cash flows play in finance?
500
This ignores: Timing of returns Cash flows available to stockholders Risk
What is the Profit Maximization Goal?
500
Back 2 years and forward up to 20 years.
What is Tax Loss Carry-back and Carry-forward?
500
by Marginal Cost-Benefit Analysis MB≥MC
How is finance related to economics?
500
=Taxes Paid / Taxable Income The rate at which additional income is taxed.
What is the Average Tax Rate? What is the Marginal Tax Rate?
500
Financial summary of a firm's operating results during a specified period.
What is an Income Statement?