BMGT 443 Lecture Notes - Lecture 4: Buy Side, Cash Flow, Sustainable Development

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 443
• Professor: Joseph Perfetti

Document Summary

Concepts from syllabus: economic and industry analysis, frameworks for valuation, reorganizing the financial statements (makes sense of cash flows, financial statement analysis. Will be questions on information covered in book that wasn"t covered in class. Be as concise as possible while explaining answers, while fully answering question in depth (must refer to data when drawing conclusions from data) Analysts research companies to set prices for the securities. Nopat is what a company profits during the year which is split up into what is reinvested into the business and what is returned to investors. Sustainable growth = reinvestment rate * roic: 2 things drive growth: Turning a profit on reinvestments (roic)- if you have a higher roic you can grow faster without needing other people"s money and if you have a low roic you will need money from others to help growth.