BCOR 2200 Study Guide - Effective Interest Rate, Premium Bond, Loan
Document Summary
3 exams: try to arrive 30 minutes early. 100 points each x 3 = 300 points total. Agency problems: person doesn"t own lots of shares but controls all the money, do i consume perks that are unnecessary, get airplane for 40 mil. 36 mil has to be paid by stockholders. Agency issues: management vs. shareholders, shareholders vs. Bondholders: bondholders want more safety, stockholders want risk, want control. Financial statements: balance sheet = snap shot on a particular date, relationships, t. assts = l + se, t. assts = t. l. = se: book value vs. market value, common stock = par value, apic = additional paid above par value, net working capital = c. assts c. liabilities, gaap. Cash flow: why be concerned about cash flow, the cash flow identity, cash flow from assets = cash flow to creditors (bondholders, cash flow from assets = operating cash flow. Current assets + fixed assets = total assets.
