New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

First Exam Notes Ch.1,2,3,4

Star Star Star Star Star
1 review
by: Travis Clapp

First Exam Notes Ch.1,2,3,4 BUS 311

Marketplace > Indiana State University > Business > BUS 311 > First Exam Notes Ch 1 2 3 4
Travis Clapp
View Full Document for 0 Karma

View Full Document

Business Finance

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Get these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Business Finance

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Business Finance notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

Marketing plan
Business Finance
Class Notes




Star Star Star Star Star
1 review
Star Star Star Star Star
"Better than the professor's notes. I could actually understand what the heck was going on. Will be back for help in this class."
Anika Skiles

Popular in Business Finance

Popular in Business

This 0 page Class Notes was uploaded by Travis Clapp on Wednesday January 27, 2016. The Class Notes belongs to BUS 311 at Indiana State University taught by Haque in Spring 2016. Since its upload, it has received 42 views. For similar materials see Business Finance in Business at Indiana State University.


Reviews for First Exam Notes Ch.1,2,3,4

Star Star Star Star Star

Better than the professor's notes. I could actually understand what the heck was going on. Will be back for help in this class.

-Anika Skiles


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/27/16
Chl Bus 311 Corporate Finance business nance Investments Financial institutions International nance Financial asset stocks and bond Home realestate asset Domestic Corporate Finance Financial Institutions Investments Cap alBudge ng What long term investments or projects should the business take on Capital Structure How should we pay for our asset Should we use debt or equity Working capital management How do we manage the daytoday nances of the rm Three major forms in the Unites States Sole proprietorship Partnership Advantagestwo or more owners more capital available dis dif cult to transfer ownership General Limited Corporation separation of ownership and management transfer ownership easy easier to raise capital double taxann SCorp Limited liability company Forms of Business Organization Three Major forms in the United States Goal of corporation Maximize market share Sarbanes and oxley act enrn tyco WorldCom Adelphia Intended to strengthen protection against accounting fraud and nancial malpractice Compliance very costly Firms driven to go public outside the US Go private go darkquot Ch 1 Quiz What are the four basic areas of nance What are the three types of nancial management decisions and what questions are they designed to answer What are the three major forms of business organization What is the goal of nancial management What are agency problems and why do they exist within a corporation Chapter 2 Liquitity how fast you can turn your asset into cash Liablities and OE Right hand side ascending order when due is paid Net working capital Current Assets minus current liabilities Usually positive for a healthy rm Balance sheet ma GEHFOMTIEH iraisiLE 241 Balianee Sheets as ef Deeember 31 awe and ED14 r 1 5 ii Mimi 395 Ballaii39iee sheets fur Ma a Eerperatiien 2011 3 2Dquot 4 2m 3 Elli 4 Assets Liabilities andl I ZlI39iliril1iersi Equity Current assets Current liabilities Gash lime 16504 eeseunts payable 5 232 266 seesaw a receivable 455 683 Mates payable 19E ll lllnlueirillieiry 553 555 Fatal a see a 389 Tatal 1nil12 1403 Fixed assts lhlet fisetil assets 1g 44 1DQ Lei39ilgetenrn debt 408 454 Owners equity Cremiimen steslk and paaidlin surplus Bill BillCI Retained earnings 391 230 391 29 Tetalll 51 20 21289 Tetal liabilities anti TDiI I 2355 3112 ewaersquot eatlity sates 3112 NWC2013 684 NWC2014 1014 A NWC 330 Book value the balance sheet value of the assets liabilities and equity Market valuetrue value in the market Markettobook ratio PPS Book value per share Book value per share Total Equityshares outstanding 2591 33 7852 MarkettoBook 88 7852 112 times Net incomerevenue expenses Taxable incomeEBT same thing Marginal vs Average Tax rates If considering a project that will increase taxable income by 1 million which tax rate should you use in your analysis Know how to calculate averagemarginal Tn u rnhln In nu mg I nunln E r E r EH T39Er 39TEg 39l 39IIZ39III39IIIII39III39IIZ39I mm Total tax bill136000O Taxable income4000OOO Marginal34 34 Average34 How to nd average IDK Cash ow one of the most important pieces of information that can be derived from nancial statements FIND CASH FLOW THE PEN ANALOGY Assets liabilityowners equity 100pen8020 39 CFFA Operating Cash Flow OCF Net Capital Spending NCS Changes in NWC ANWC A different way to do it is this To nd OCF look in income statement OCF Cash Flow From Assets CFFA Cash Flow to Creditors CFCR Cash Flow to Stockholders CFSH EBIT depreciation taxes NCS ending net FA beginning net FA depreciation Current assetcurrent iabiityNWC MEMORIZE natal L h bi i CFFA OCF NCS ANWC OCF EBIT depreciation taxes 694 65 212 547 NCS ending net FA beginning net FA depreciation 1709 1644 65 130 ANWC ending NWC beginning NWC 1403 389 1112 428 330 CFFA 547 130 330 87 mal thi ias lmvars MEMO RIZE CFFA CFCR CFSH CFCR interest paid net new borrowing 70 454 408 24 CFSH dividends paid net new equity 103 640 600 63 CFFA 24 63 87 HOMEWORK pg 45 1234891516 Solutions in the back Chapter 3 Calculate current ratio pinpoint strength and weakness of company EXAM will give me this ASSETS Eu rre rIt As sets Essh Assbunts Flebeiiursble IFW E rItn ry Tbtsl Fired assets Net Plant S Fn39uiprnent I II I no 11 FiLlFFi EHi Helsnm Eh SEEM Lisbilities El wners Equity Surrent Lisbilities Absnunts Psy sble thes Psy sble Tbtsl Lung term debt wners39 Equity nmmnn Stack and nsiri in sun etsined Fsrnin s Tntsl Tntall i39 Ask me to nd these Current Ratio CA CL 708 540 131 times Quick Ratio CA Inventory CL Acid Test 708422 540 053 times Cash Ratio Cash CL 98 540 18 times Gammon nancial ratiias Ebertterm saivenevy er liisquiditv raties CUIIWEl lt assets Current ratla EltWE t assets Illnventery Current liabtttties Cash Eurremt liabilities Qutek tatie Cash Iratia Langteam seliveneyg or nancial leverage raties Total assets Total elatiit l Tatal assets Debtequity ratie Tutsi debtitetai equity Equity muttiplielr Tutsi assetsf tetal equityr EBIT interest EBIIIT Utepnreeatian luterest Tetal debt tatia Times interest earnlesl ratio Cash Beverage ratie Asset utilizatieni er turneverF raties it East at gases sale lnventarv 365 days Investerv turaever Sales sseunts reeeivaJiJile East at gases sate Aseaunts aavabte Illnvetiterv turnnever Inlays sales in investerv lHeeeivables turnever Pay lhi turnauar 365 alleys Fieeeivaitiles tuvnever BIB5 days Favatales tuirnever Sales Fatal assets Tatal assets Sales Davsquot sates in resetvatjles Days nests in payablea lli e tal asset turnover Gapital tintemsity Fquotretitabuilitggir retires tdet Insemne Bates Fieturrm arm assets RDA Tum asaets Net inseme Tetal er39niiitgnr v Net inseme Sales Assets REE sates K Assets Equity Pro t margin Fleturn en eauityr FtDEj Market value ratias Prise per share Earnings per sitare Rates per share Sales per slhare Mamet vatue per share Beet value per share Enterprise vatue ssITETa F39nieeearninngls ratie Pacesates ratie Ma kettesaek ratie EB I39ill39llDA ratie EMTATETLTETETETETLTElTLTE1 If the market to book is 1 you re not making any money you want it to be greater than 1 RETERN ON EQUITY ROE ROE PM NITE PM TAT EM Basic Formula DuPont Identity Net Income Sales TAT Sales Total Assets EM Total AssetsTotal Equity ROE NI X Sales X E Sales TA TE TE Pro t Margin Asset Usage Leverage ROE B retained earnings Conglomerates not readily available comparable HOMEWORK pg87 12357810111215 Exam next Thursday On Tuesday bring formula sheet at beginning of class just formula you can put the word from the formula sheet from above with words on it Table 35 He will discuss format on Tuesday PV present value FV future value PMT Constant CF PMTpayment R is a decimal r interest rate FVPVlrquott Rewrite formula pvFV1rquott 1y period interest rate Nnumber of periods FV future value PV present value


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.