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Study sets matching "chapter 1 corporate finance"

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Study sets matching "chapter 1 corporate finance"

Corporate Finance Chapter 1
financial managment
what is another name for financial man…
capital markets
investments
focuses on decisions relating to how much and what type of as…
corporate finance
the markets where interest rates, along with stock and bond p…
decisions concerning stocks and bonds and include a number of…
financial managment
focuses on decisions relating to how much and what type of as…
what is another name for financial man…
corporate finance
35 terms
Corporate Finance (Chapter 1)
Capital Budgeting
Capital Structure
Sole proprietorship
Corporation
The process of planning and managing a firm's longterm invest…
The mixture of debt and equity maintained by a firm
A business owned by a single individual
A business created as a distinct legal entity composed of one…
Capital Budgeting
The process of planning and managing a firm's longterm invest…
Capital Structure
The mixture of debt and equity maintained by a firm
35 terms
Corporate Finance Terms (Chapter 1)
Capital Budgeting
Capital Structure
Sole proprietorship
Corporation
The process of planning and managing a firm's longterm invest…
The mixture of debt and equity maintained by a firm
A business owned by a single individual
A business created as a distinct legal entity composed of one…
Capital Budgeting
The process of planning and managing a firm's longterm invest…
Capital Structure
The mixture of debt and equity maintained by a firm
23 terms
Corporate Finance: Chapter 1
Finance
Financial Services
Managerial Finance
Sole Proprietorship
the science and art of managing money.
the area of finance concerned with the design and delivery of…
actively manages the financial affairs of all types of busine…
a business owned by one person and operated for his or her pr…
Finance
the science and art of managing money.
Financial Services
the area of finance concerned with the design and delivery of…
12 terms
corporate finance chapter 1
capital budgeting
financing decision
real assets
financial assets
decision to invest in tangible or intangible assets
the form and amount of financing of a firm's investments
assets used to produce goods and services
financial claims to the income generated by the firm's real a…
capital budgeting
decision to invest in tangible or intangible assets
financing decision
the form and amount of financing of a firm's investments
13 terms
Corporate Finance: Chapter 1
The top financial manager within a fir…
Who oversees cash management, credit m…
Who oversees taxes, cost accounting, f…
What are the 3 major forms of business
Chief financial officer
Treasurer
Controller
Sole proprietorship, Partnership (general and limited), and c…
The top financial manager within a fir…
Chief financial officer
Who oversees cash management, credit m…
Treasurer
12 terms
Corporate Finance Chapter 1
advantages of sole proprietorship
disadvantages of sole proprietorship
managements primary objective
corporate responsibility views
ease of formation... subject to few regulations... no corporate inc…
limited life... unlimited liability... difficult to grow
increasing shareholder value
shareholders don't place a high value on this... what about tax…
advantages of sole proprietorship
ease of formation... subject to few regulations... no corporate inc…
disadvantages of sole proprietorship
limited life... unlimited liability... difficult to grow
16 terms
Chapter 1 Corporate Finance
Capital budgeting decision or investme…
Financing Decision
Capital structure
Real assets
Decision about which real assets the firm should acquire
Decision on how to raise the money to pay for investments in…
A firm's mix of long-term financing
Assets used to produce goods and services
Capital budgeting decision or investme…
Decision about which real assets the firm should acquire
Financing Decision
Decision on how to raise the money to pay for investments in…
Corporate Finance Chapter 1 Reading
Treasurer
Capital Budgeting
Capital Structure
Working Capital Management
What position within a corporation does the corporate finance…
What is determining what long term investments a firm should…
What is determining where a corporation will get long-term fi…
What is how a corporation will manage the everyday financial…
Treasurer
What position within a corporation does the corporate finance…
Capital Budgeting
What is determining what long term investments a firm should…
8 terms
Chapter 1 - Essentials of Corporate Finance
Capital Budgeting
Capital Structure
Working Capital
Sole Proprietorship
The process of planning and managing a firm's long-term inves…
The mixture of debt and equity maintained by a firm
A firm's short term assets and liabilities
A business owned by a single individual
Capital Budgeting
The process of planning and managing a firm's long-term inves…
Capital Structure
The mixture of debt and equity maintained by a firm
23 terms
Chapter 1 Introduction to Corporate Finance
The Four Basic Areas of Finance are:
What is the focus of corporate finance…
Capital Budgeting
Capital Structure
1. Corporate Finance... 2. Investments... 3. Financial Markets and…
1. What long-term investments should a firm take on?... 2. Where…
The process of planning and managing a firm's long-term inves…
The mixture of debt and equity maintained by a firm
The Four Basic Areas of Finance are:
1. Corporate Finance... 2. Investments... 3. Financial Markets and…
What is the focus of corporate finance…
1. What long-term investments should a firm take on?... 2. Where…
51 terms
Corporate Chapter 1: What is corporate finance?
capital budgeting
working capital management
goal of corporation
stakeholder
processing of planning and managing a firms investment in phy…
managing short-term operating cash flows
maximize shareholder wealth
residual claimant, last group to get paid
capital budgeting
processing of planning and managing a firms investment in phy…
working capital management
managing short-term operating cash flows
Corporate Finance Vocab - Chapter 1
Finance
Financial Services
Managerial Finance
Financial Manager
The science and art of managing money.
The area of finance concerned with the design and delivery of…
Concerns the duties of the financial manager in a business.
Actively manages the financial affairs of all types of busine…
Finance
The science and art of managing money.
Financial Services
The area of finance concerned with the design and delivery of…
14 terms
Chapter 1 Corporate Finance Terms
Sarbanes-Oxley Act
Prorietorship
Partnership
Corporation
A law passed by Congress that requires the CEO and CFO to cer…
An unincorporated business owned by one individual.
An unincorporated business owned by two or more persons.
A legal entity created by a state, separate and distinct from…
Sarbanes-Oxley Act
A law passed by Congress that requires the CEO and CFO to cer…
Prorietorship
An unincorporated business owned by one individual.
38 terms
Corporate Finance-Chapter 1 Vocabulary
Finance
Financial Markets
Investors
Retained Earnings
The study of applying specific value to things we own, servic…
The places & processes that facilitate the trading of financi…
Those who buy securities or other assets in hopes of earning…
The portion of company profits that are kept by the company r…
Finance
The study of applying specific value to things we own, servic…
Financial Markets
The places & processes that facilitate the trading of financi…
13 terms
Corporate Finance chapter 1
capital budgeting
capital structure
working capital
sole proprietorship
process of planning and managing a firm's long term investments
mixture of debt and equity maintained by a firm
firm's short-term assets and liabilities
a business owned by a single individual
capital budgeting
process of planning and managing a firm's long term investments
capital structure
mixture of debt and equity maintained by a firm
28 terms
Finance Chapter 1: Introduction to Corporate Finance
Three financial management decisions
Two reporters to Chief Financial Offic…
Controller's Office
Treasurer's Office
Capital Budgeting... Capital Structure... Working Capital Management
Controller's Office... Treasurer's Office
Cost/financial accounting, taxes, management information syst…
Firm's cash and credit, financial planning, and capital expen…
Three financial management decisions
Capital Budgeting... Capital Structure... Working Capital Management
Two reporters to Chief Financial Offic…
Controller's Office... Treasurer's Office
23 terms
Chapter 1 - Corporate Finance
Corporate Finance
Financial Management Decisions (3)
Capital Budgeting
Key Objectives of Capital Budgeting
Studies the relationship between business decisions and the v…
Capital Budgeting, Capital Structure, Working Capital Managem…
Process of planning and managing a firm's long-term investments
Evaluating Size, Timing, and Risk of future cash flows
Corporate Finance
Studies the relationship between business decisions and the v…
Financial Management Decisions (3)
Capital Budgeting, Capital Structure, Working Capital Managem…
39 terms
corporate finance- chapter 1
risk premium
varlance
standard deviation
normal distribution
the excess return required from an investment in a risky asse…
the average squared difference between the actual return and…
the positive square root of the variance
a symmetric, bell-shaped frequency distribution that is compl…
risk premium
the excess return required from an investment in a risky asse…
varlance
the average squared difference between the actual return and…
60 terms
Corporate Finance Chapter 1
Finance
Investments
Financial Intermediary
Market Intermediary
Study of how and under what terms funds are allocated between…
deals with financial markets and securities, including stocks…
Transforms the nature of the securities in a market
Facilitates the working of markets and helps provide direct i…
Finance
Study of how and under what terms funds are allocated between…
Investments
deals with financial markets and securities, including stocks…
50 terms
Corporate Finance Chapter 1 Terms
Corporate Finance
What do Financial Managers do? (5 thin…
How do businesses raise money internal…
What is the similarity & difference be…
Managing money that flows in and out of businesses... (CFO's wei…
THESE 5 things (1 or more at a time)... -Financing Function:oper…
Internally: from their own cash flows ... Externally: from share…
-they are both external means of raising money... -Equity: an ow…
Corporate Finance
Managing money that flows in and out of businesses... (CFO's wei…
What do Financial Managers do? (5 thin…
THESE 5 things (1 or more at a time)... -Financing Function:oper…
32 terms
Corporate Finance (Chapter 1)
Sole proprietorship
Corporation
Agency problem
Partnership
A business owned by a single individual
legally defined, artificially being, separate from owners
when managers, despite being hired as agents of shareholders,…
Direct ownership by two or more entities who enter into a con…
Sole proprietorship
A business owned by a single individual
Corporation
legally defined, artificially being, separate from owners
9 terms
Chapter 1- Introduction to Corporate Finance
Capital Budgeting
Capital Structure
Working Capital
Sole Proprietorship
The process of planning and managing a firm's long-term inves…
The mixture of debt and equity maintained by a firm.
A firm's short-term assets and liabilities.
A business owned by a single individual.
Capital Budgeting
The process of planning and managing a firm's long-term inves…
Capital Structure
The mixture of debt and equity maintained by a firm.
14 terms
Corporate Finance Chapter 1
Capital Budgeting Decisions/Investment…
Financing Decision
Capital Structure
Real Assets
Decision about what real assets the firm should acquire
decision on how to raise the money to pay for investments in…
A Firm's mix of long-term financing
Assets used to produce goods and services
Capital Budgeting Decisions/Investment…
Decision about what real assets the firm should acquire
Financing Decision
decision on how to raise the money to pay for investments in…
29 terms
Corporate Finance Chapter 1
capital budgeting or capital expenditu…
financing decision
real assets
financial assets
decision to invest in tangible or intangible assets
form and amount of financing of a firm's investments
assets used to produce goods and services
financial claims to the income generated by the firm's real a…
capital budgeting or capital expenditu…
decision to invest in tangible or intangible assets
financing decision
form and amount of financing of a firm's investments
Corporate Finance Chapter 1
sole proprietorship
partnership
limited partnership
limited liability
-a business owned and run by one person... -no separation betwee…
-business owned and run by more than one owner... -all partners…
a partnership with two kinds of owners; general partners and…
when an investor's liability is limited to her investment, no…
sole proprietorship
-a business owned and run by one person... -no separation betwee…
partnership
-business owned and run by more than one owner... -all partners…
28 terms
Corporate Finance Chapter 1
financial capital
real capital
captal structure theory
inflation
common stock, preferred stock, bonds and retained earnings, a…
long term productive assets (plant and equipment)
a theory that addresses the relative importance of debt and e…
the phenomenon of prices increasing with the passage of time
financial capital
common stock, preferred stock, bonds and retained earnings, a…
real capital
long term productive assets (plant and equipment)
15 terms
Corporate Finance Chapter 1
3 forms of business organizations
Sole proprietorship advantages
Disadvantages sole proprietorship
Partnership advantages
sole proprietorship, partnership, corporation
easiest to start, least regulated, single owner keeps all the…
limited to the life of one owner, equity capital limited to o…
two or more owners, more capital available, relatively easy t…
3 forms of business organizations
sole proprietorship, partnership, corporation
Sole proprietorship advantages
easiest to start, least regulated, single owner keeps all the…
17 terms
Corporate Finance Chapter 1
The Balance Sheet Model
Total value of assets
Total value of the firm to investors
net working capital
Total value of assets = total value of the firm to investors
(1) current assets (cash, inventory)... (2) fixed assets:... a. ta…
(1) current liabilities... (2) long-term debt... (3) shareholders'…
= current assets - current liabilities
The Balance Sheet Model
Total value of assets = total value of the firm to investors
Total value of assets
(1) current assets (cash, inventory)... (2) fixed assets:... a. ta…
10 terms
Chapter 1 - Corporate Finance
Capital Budgeting
Capital Structure
Working Capital
Sole Proprietorship
The process of planning and managing a firm;s long-term inves…
The mixture of debt and equity maintained by a firm.
A firm's short-term assets and liabilities.
A business owned by a single individual.
Capital Budgeting
The process of planning and managing a firm;s long-term inves…
Capital Structure
The mixture of debt and equity maintained by a firm.
28 terms
Chapter 1 Corporate Finance
Financial Manager Questions
Financial Manager
Top Financial Manager- Chief Financial…
Top Financial Manager- Chief Financial…
What long-term investments should the firm take on?... Where wil…
Financial Managers try to answer some or all of the questions.
Treasure-oversees cash management, credit management, capital…
Oversees taxes, cost accounting, financial accounting and dat…
Financial Manager Questions
What long-term investments should the firm take on?... Where wil…
Financial Manager
Financial Managers try to answer some or all of the questions.
41 terms
Corporate Finance: Chapter 1 Vocab
Finance
Financial Markets
Investors
Retained Earnings
The study of applying specific value to things we own, servic…
The places & processes that facilitate the trading of financi…
Those who buy securities or other assets in hopes of earning…
The portion of company profits that are kept by the company r…
Finance
The study of applying specific value to things we own, servic…
Financial Markets
The places & processes that facilitate the trading of financi…
11 terms
Corporate Finance Chapter 1
Productive assets
Capital budgeting
Financing decisions
Working capital management
The tangible and intangible assets a firm uses to generate ca…
The decision-making process through which the firm purchases…
the ways in which firms obtain and manage long-term financing…
The management of current assets, such as money owed by custo…
Productive assets
The tangible and intangible assets a firm uses to generate ca…
Capital budgeting
The decision-making process through which the firm purchases…
13 terms
Corporate Finance Chapter 1
Capital Budgeting
Capital Structure
Working capital
Sole Proprietorship
The process of planning and managing a firms long term invest…
The mixture of debt and equity maintained by a firm
A firm's short-term assets and liabilities
A business owned by a single individual
Capital Budgeting
The process of planning and managing a firms long term invest…
Capital Structure
The mixture of debt and equity maintained by a firm
21 terms
Corporate finance chapter 1
Opportunity cost
efficient market
agency problem
general partnership
the cost of making a choice in terms of the next best option
market prices of all traded assets fully reflect all availabl…
separation of of management and the ownership of the firm
all partners are fully responsible for liabilities incurred b…
Opportunity cost
the cost of making a choice in terms of the next best option
efficient market
market prices of all traded assets fully reflect all availabl…
18 terms
Corporate Finance Chapter 1.1
A striking feature of large corporatio…
The financial management function is u…
The vice president of finance coordina…
The controller's office handles...
making business decisions, particularly on a day-to day basis…
Vice president of finance or some other chief financial offic…
treasure and the controller
cost and financial accounting, tax payments, and management i…
A striking feature of large corporatio…
making business decisions, particularly on a day-to day basis…
The financial management function is u…
Vice president of finance or some other chief financial offic…
15 terms
Chapter 1 - Corporate Finance
True or False?... The vice president of f…
What is the capital budgeting decision?
What do you call the specific mixture…
A firm's Capital Structure (financial…
True
Capital budgeting: planning and managing of a firm's long ter…
A firm's capital structure (or financial structure) is the sp…
In addition to deciding on the financing mix, the financial m…
True or False?... The vice president of f…
True
What is the capital budgeting decision?
Capital budgeting: planning and managing of a firm's long ter…
32 terms
Corporate Finance chapter 1
Investment decisions (capital budgeting)
financing decisions ( capital structure)
dividend decisions
working capital management
should new build a new plant? should we discontinue a product…
how will assets be financed? with internal funds (retained ea…
what is our dividend policy? should we pay dividends or retai…
how do we manage out day-to-day operations (e.g, paying bills…
Investment decisions (capital budgeting)
should new build a new plant? should we discontinue a product…
financing decisions ( capital structure)
how will assets be financed? with internal funds (retained ea…
16 terms
Corporate Finance chapter 1
What is a corporation
What long-term investments should the…
How should the firm raise funds for th…
How should short-term assets be manage…
a business created as a distinct legal entity owned by one or…
Capital Budgeting
Capital Structure
Working Capital
What is a corporation
a business created as a distinct legal entity owned by one or…
What long-term investments should the…
Capital Budgeting
46 terms
Corporate Finance-Chapter 1
finance is the study of how to value s…
investors lend capital to businesses,…
successful companies ? for the use of…
what are the two sources of friction?
-stocks, bonds -mortgage payments -companies -projects -busin…
expand, hire more employees, and create a promising future
repay investors
retained earnings-funds (profits) that the firm retains to su…
finance is the study of how to value s…
-stocks, bonds -mortgage payments -companies -projects -busin…
investors lend capital to businesses,…
expand, hire more employees, and create a promising future
23 terms
Chapter 1 Introduction to Corporate Finance
What is the capital budgeting decision?
Into what category of financial manage…
What do you call the specific mixture…
What are the three forms of business o…
The financial tries to identify investment opportunities that…
Working capital management.
Capital structure.
Sole proprietorship, partnership, corporation.
What is the capital budgeting decision?
The financial tries to identify investment opportunities that…
Into what category of financial manage…
Working capital management.
14 terms
Corporate Finance 3320- Chapter 1
The discipline that deals with decisio…
The worth of the future cash flows, st…
The concept that we should improve the…
A system that integrates the entire pr…
Finance
Value
Sustainability
Lean manufacturing
The discipline that deals with decisio…
Finance
The worth of the future cash flows, st…
Value
20 terms
Corporate Finance Chapter 1.2
Three different legal forms of busines…
Sole proprietorship
Advantage and disadvantage of sole pro…
Partnership
1). sole proprietorship... 2). partnership... 3). corporation
A business owned by a single individual. ... *There are more pr…
Advantage - the owner of the sole proprietorship keeps all th…
A business formed by two or more individuals or entities.
Three different legal forms of busines…
1). sole proprietorship... 2). partnership... 3). corporation
Sole proprietorship
A business owned by a single individual. ... *There are more pr…
48 terms
Corporate Finance Chap 1 Vocab
Finance
Financial Markets
Investors
Retained Earnings
The study of applying specific value to things we own, servic…
The places and processes that facilitate the trading of finan…
Those who buy securities or other assets in hopes of earning…
The portion of company profits that are kept by the company r…
Finance
The study of applying specific value to things we own, servic…
Financial Markets
The places and processes that facilitate the trading of finan…
11 terms
Chapter 1 - Corporate Finance
Duites of a Financial Manager
Why are duties important
Who are stakeholders of a company?
What is the Goal of the Stakeholders?
Develop a budget, extend credit, evaluate capital expenditure…
React to financial crisis, increased competition, technologic…
Any group that has an economic connection to the company. Ex:…
Preserve their intrests
Duites of a Financial Manager
Develop a budget, extend credit, evaluate capital expenditure…
Why are duties important
React to financial crisis, increased competition, technologic…
14 terms
Fundamentals of Corporate Finance - Chapter 1
Capital budgeting or capital expenditu…
Financing decision
Real assets
Financial assets
Decision to invest in tangible or intangible assets
Decision on the sources and amounts of financing
Assets used to produce goods and services
Financial claims to the income generated by the firm's real a…
Capital budgeting or capital expenditu…
Decision to invest in tangible or intangible assets
Financing decision
Decision on the sources and amounts of financing
14 terms
Fundamentals of Corporate Finance - Chapter 1
Capital budgeting or capital expenditu…
Financing decision
Real assets
Financial assets
Decision to invest in tangible or intangible assets
Decision on the sources and amounts of financing
Assets used to produce goods and services
Financial claims to the income generated by the firm's real a…
Capital budgeting or capital expenditu…
Decision to invest in tangible or intangible assets
Financing decision
Decision on the sources and amounts of financing
8 terms
Chapter 1: Introduction to Corporate Finance
Capital Budgeting
Capital/Financial Structure
Working Capital
Sole Proprietorship
The process of planning and managing a firm's long-term inves…
The mixture of debt and equity maintained by a firm
A firm's short-term assets and liabilities
A business owned by a single individual
Capital Budgeting
The process of planning and managing a firm's long-term inves…
Capital/Financial Structure
The mixture of debt and equity maintained by a firm
29 terms
Corporate Finance ch1
investments
financial management
financial institutions and markets
international finance
this sub-area of finance involves methods and techniques to m…
this sub-area of finance looks at firm decisions in acquiring…
this sub-area of finance helps facilitate the capital flows b…
this sub-area of finance is important for adapting to the glo…
investments
this sub-area of finance involves methods and techniques to m…
financial management
this sub-area of finance looks at firm decisions in acquiring…
14 terms
Chapter 1: Overview of Corporate Finance
Capital Budgeting
Capital Structure
Working Capital Management
Sole Proprietorship
The process of planning and managing a firm's investment in l…
The mix of debt and equity maintained by a firm
Planning and managing the firm's current assets and liabilities
A business owned by a singe individual
Capital Budgeting
The process of planning and managing a firm's investment in l…
Capital Structure
The mix of debt and equity maintained by a firm
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