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FIN 335 Phase 1 Review. Chapters 1, 3, 4, 15, 16 45 Questions & Problems Fall, 2012. Chapter 1 Key Sections: 1-3, 1-4, 1-7, 1-8. Management’s Primary Objective Form of business – limits of personal liability Agency problem – Corporate control Proxy Fights & Corporate Control.
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FIN 335 Phase 1 Review Chapters 1, 3, 4, 15, 16 45 Questions & Problems Fall, 2012
Chapter 1Key Sections: 1-3, 1-4, 1-7, 1-8 • Management’s Primary Objective • Form of business – limits of personal liability • Agency problem – Corporate control • Proxy Fights & Corporate Control
Chapter 3Key Sections: 3-2, 3-3, 3-4, 3-7 • Balance Sheet: Assets, Liabilities, Equity • Income Statement information • Cash Flows: Sources, Uses, Free • Market Value Added, Economic Value Added
Chapter 4Key Sections: 4-2 thru 4-5, 4-7 • Financial ratios • Liquidity • Asset Management • Debt Management • Profitability • DuPont Analysis • ROE = ROA * Equity Multiplier (E.M.) • ROE = NPM * TATO * E.M.
Chapter 15Key Sections: 15-1, 15-3 to 15-9 • WC versus Net WC • WCM Management Strategies • Cash Conversion Cycle (components) • Inventory Conversion • Receivables Collection • Payables Deferral • Effects of changes • Cash Budget • Current Assets, Current Liabilities
Chapter 16Key Sections: 16-2 to 16-5 • Importance of Sales Forecast • Additional Funds Needed (AFN) • Pro Forma Financial Statements (uses) • Forecasting Methodologies