Stocks
This is when a company issues more than one series of preferred stock
Multiple series
This type of bond is secured by a lien on real property.
Mortgage
Accounting profits are not equal to ____ ____. It is possible for a firm to generate accounting profits but not have cash - or to generate cash flows but not report accounting profits in the books.
____ ____ is what matters
Cash flow
Sales - Expenses = _________
Profit
Microsoft was accused of being a M________ in the late nineties.
Monopoly
These type of stockholders are the true owners of the firm.
Common
debentures are more risky than secured bonds and provide a higher yield than secured bonds (True or False)
A dollar received today is worth more than a dollar received in the future. Money has ____ ______.
Time value
•U.S. follows GAAP (_______ _______ ______ _______) – a set of standards, conventions and rules established by FASB.
Generally Accepted Accounting Principles
Where did Bill Gates meet his wife?
At Microsoft
This is often referred to as a hybrid security because it has many characteristics of both common stock and bonds.
Preferred Stock
Bonds are issued by the 3 entities
Corporations, U.S. Government, State and Local Municipalities.
Risk requires ______.
Reward
The balance sheet: Assets = Liabilities + Owners ______
Equity
For an issuing firm, debentures provide the benefit of not tying up property as collateral (T or F)
True
This entitles the corporation to repurchase its preferred stock at stated prices over a given time period.
Call provision
This is an unsecured long-term debt.
Debenture
______ ______ are generally right
Market prices
These are expenses related to marketing and distributing the product or service, general administrative expenses and depreciation expense
Operating Expenses
__________ is when interest paid on an investment during the first period is added to the principal; then, during the second period, interest is earned on the new sum (that includes the principal and interest earned so far).
Compounding
This is when preferred stock can, at the discretion of the holder, be converted into a predetermined number of shares of common stock.
Convertability
The claims of subordinated debentures are honored only after the claims of ______ ____ and ___________ ___________ have been satisfied.
secured debt and unsubordinated debentures
______ __ ______ cause agency problems
Conflicts of Interest
______-____ income statement restates the income statement items as a percentage of sales.
Common-sized
The star of "The Profit"
Marcus Lemonis