BU393 Study Guide - Quiz Guide: Financial Engineering, High-Yield Debt, Accounts Receivable
Document Summary
Book value sum of retained earnings, contributed surplus, and share capital. Retained earnings the percentage of net earnings not paid out as dividends. Contributed surplus total assets minus the sum of total liabilities. Share capital portion of a company"s equity that has been obtained by trading stock to a shareholder for cash or an equivalent item of capital value. Value of all equity firm = total cash dividends payable next year. Current market price book ratio measure success of the firm. S = net income * (p/e) undervalued or there is a problem. Authorized (number of shares you"re allowed to issue) vs. outstanding (number of shares you issue) Shares may have different classes of common stock: Dividends are not seen as a business expense. Only debt holders can put the company into bankruptcy. The written agreement between the corporate debt issuer and lender is called the indenture. Total cost = f + (1-tc) cold f + e (e/5) (tc)
