MGST 217 Study Guide - Final Guide: Income Statement, Regression Analysis, Market Risk

• School: University of Calgary
• Department: Management Studies
• Course: MGST 217
• Professor: Cameron Welsh

Document Summary

What financial information does your banker want: indication of the financial health of your company and ability to pay. Current and past income statement, balance sheet, and cash flow. Pro-forma statements for income statement, balance sheet and cash flow: financial ratio. Financial ratios = various indicators of the financial health of a company: can be used to compare companies. Money over time: present value grows to future value, future value is discounted to get present value, buying power of money decreases over time due to inflation. Simple interest: assumes that interest is only calculated on the original investment, fv = pv(1+nr) Compound interest: assumes that interest is calculated on both the initial investment and the interest accrued (earned to date, fv = pv(1+r)n. Anatomy of a loan: monthly payments are made to cover both the interest and to repay a portion of the principal.