Impact Investing
The five steps of Theory of Change in order
Inputs, Activities, Outputs, Outcome, Impact
Which of the following is the right balance sheet equation?
Assets + Shareholder’s Equity = Liabilities
Assets - Liabilities = Shareholder’s Equity
Assets = Liabilities - Shareholders Equity
None of the above
2. Assets - Liabilities = Shareholder’s Equity
The starting point of the cash flow statement is ____ from the _____ statement
Net Income, Income
[DCF] What drives an investment decision?
Present value of all future cash flows < Initial investment amount
Present value of all future cash flows = Initial investment amount
Present value of all future cash flows > Initial investment amount
Present value of all future cash flows > Initial investment amount
IIG New Analyst Class “State” Fruit
Banana
What does ESG stand for, and give an example for each letter
Environmental - energy use, waste, pollution, natural resource use, animal rights, environmental risks
Social - community impact, ethics, health & safety, customer responsibility
Governance - transparent accounting, shareholder rights, anti-corruption, political lobbying, risk management
(T/F) EBIT is the same as net income
False
You have to cut the portion of operating profit that goes to taxes to get the value of net income.
As a line item on the cash flow statement, share repurchases would fall under:
CFO, CFI, or CFF?
Cash Flow from Financing
What factor does not impact the riskiness of a debt investment?
Credit rating
Ability to generate cash flow
Other outstanding debt
Common shares outstanding
Common shares outstanding
Most likely to work for Dyal & Co.
Claire
Investing strategy with the aim to generate specific beneficial social or environmental effects in addition to financial gains
Which statement is the most important and what is its purpose?
Cash flow statement
Measures how well the company generates cash to pay its debt obligations and fund its operating expenses
What is the profit margin formula, & is an increasing OR decreasing value a positive indicator?
Net Income / Revenue
Increasing over time
What does time value of money mean?
Money you have in the future is worth LESS than an identical amount of money you have today.
Most likely to buy front row tickets to Taylor Swift’s next Concert?
Jared
Rating that measures company’s resilience to long-term, industry material environmental, social, and governance (ESG) risks
It identifies industry leaders and laggards according to ESG risk exposure and their standing with respect to the industry
MSCI
How does net income affect the balance sheet?
It flows into the cash balance
It flows into working capital
Net income is only directly connected to the cash flow statement
It flows into retained earnings
It flows into retained earnings
Why do we add depreciation on the cash flow statement?
It is a non-cash expense that appears on the income statement
Which of the following carries the most risk?
Private equity
Public equity
Private debt
Public debt
Private equity
Who has the easiest major?
You Rossholes
Why is equity more risky than debt?
Because it sits lower on the capital structure
Because it has more legal restrictions associated with it
Because it sits higher on the capital structure
Debt gets voting rights while equity does not
1. Because it sits lower on the capit
How do you find working capital on the balance sheet?
Current Assets - Current Liabilities
Working capital helps plan for future needs and ensure the company has enough cash and cash equivalents meet short-term obligations, such as unpaid taxes and short-term debt
Iota Iota Gamma recently purchased a car for $50,000. The useful life of the vehicle is 20 years, and it has an estimated salvage value of $10,000. Calculate the depreciation expense for the first year using the straight-line depreciation method.
$2000
What is a comps analysis?
Comparing the relative valuations of companies in the same industry
Worst drunk
Interesting responses...