BSM 600 Study Guide - Final Guide: Inventory Turnover, Opportunity Cost

• School: Ryerson University
• Department: Business Essentials
• Course: BSM 600
• Professor: Ranjita Singh

Document Summary

3/4 short answer/essay will be from the whole course. Will give formula for ratios but need to know interpretation. Global business; how to calculate opportunity cost. Financial managers usually focus almost exclusively on meeting the needs of their firms in the short run, leaving long run financial issues to top management. When the goals of stakeholders conflict with each other, financial managers usually adopt the view that the preferences of internal stakeholders, such as managers and employees, should be given the most weight. The current ratio helps financial managers evaluate the ability of a firm to pay short term liabilities as they come due. The debt to equity ratio measures the extent to which a firm relies on debt financing by dividing the total debt by the total owner"s equity. The higher the value of the ratio, the more the firm is relying on debt.