Markets
Why is a dollar today worth more than a dollar tomorrow?
Time value of money
What is the high yield rating cutoff?
Under BBB-/Baa3
What is the balance sheet equation?
A=L+E
What is the equation for equity value?
MC*Shares outstanding
Who is the PM?
Richie
What 3 groups make up capital markets?
Corporates, Buy-Side, Sell-Side
What is the price-yield relationship?
Inverse
What are the three main financial statements?
IS, BS, CFS
What is the equation for enterprise value?
EV=MC+debt-cash
Spell Mikey G's last name
Giangregorio
What is the Federal Reserve's dual mandate?
Price stability and maximum unemployment
Discount
What are the three sections of the Cash Flow Statement?
CFFO, CFFI, CFFF
Where can you find company filings?
SEC Edgar or Bamsec
Name the 5 sectors
Healthcare, Energy, TMT, Industrials, Consumer
Name 3 major stock indices
S&P 500, DJIA, Russell 200, Nasdaq Composite
What financial ratio is often referred to as the leverage ratio?
Debt/EBITDA
How do the three main financial statements connect?
Give at least 2/3
What are the various classes of stock?
Common Stock (A&B), Preferred Stock
Name 2 people interning/working full-time in IB this summer
Alex, Stew, Amanda, Marie, Sarah
Name 3 valuation methods
DCF, Comparables, Precedent Transactions
Liquidation, LBO
Give an example of a basic capital structure
Loans, Senior Debt, Junior Debt, Preferred Stock, Common Stock
How does a $10 increase in depreciation affect the financial statements?
Pre-tax income drops $10, w/ 40% tax rate net income decreases $6, CFFO up $4, PPE down $10, Retained Earnings down $6
What is a DCF analysis?
Method for valuing company where estimated cash flows are discounted back to today, giving present value of company
Name 1 MFIF Alumni
Many