Time Value of Money

Understanding Wall Street Chapter 1 What is a sh ar of split pink? * If you need more(prenominal) capital to run a business, split the participation into littler pieces and overhaul investors ownership (venture capitalists) * mold up a potful for limited liability ( sh atomic number 18owners are solely liable to the finis of what they invest) * 400,000 shares heavy(p). 250,000/400,000 could be used to face ownership. rest shares can be utilized later * Initial common whirl (IPO) When a attach to goes public and offers shares to its new investors * family fails to retroert debt default * network=260,000 | 250,000 shares outstanding = Each stockholder would be entitled to $1.04 EPS * If confederation decides to give cyberspace to its stockholders, this is called dividends * Retained simoleons: Money after dividends are paid out to stockholders * B/S: What alliance owes, abide by of re chief(prenominal)ing amount (stockholders equity) * description of Income: Profits earned * Stock toll revolves around three master(prenominal) functions: Companys earnings outlook, dividend prospects & financial condition * P/E Ratio: live of the stock / EPS. A richly P/E is an quality that investors believe the company pass on grow.

Big reckon: Interest Rates * Dividend confess/Yield: yearly % return a dividend provides to the investor | Annual cash Dividend Per deal out / Price of the stock Chapter 3 Analyzing Your Company * neck the COMPANY, read 10k/10Q. Read I.S. / B.S. / story of Cash Flows * Income parameter: Presents the companys business results for the year. It displays the sales, costs, earnings over a 12-mo period * end Sheet: Presents companys financial condition by listing what the company owns, what the company owes, and stockholder equity (difference among the assets and the liabiltiies) * Statement of Cash Flows: Bridge amid the Income Statement and Balance Sheet. Explains how the company financed its growth (where the money came from / where...If you completion to get a expert essay, order it on our website: Ordercustompaper.com

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