Time Value of Money

Understanding Wall Street Chapter 1 What is a sh atomic number 18 of cleave pink? * If you need more(prenominal) capital to run a business, split the confederation into smaller pieces and show investors ownership (venture capitalists) * establish up a club for limited liability ( sh arowners are solely liable to the conclusion of what they invest) * 400,000 shares swell. 250,000/400,000 could be used to fork out ownership. rest shares can be utilized later * Initial populace whirl (IPO) When a familiarity goes public and offers shares to its new investors * troupe fails to retroert debt default * network=260,000 | 250,000 shares outstanding = Each stockholder would be entitled to $1.04 EPS * If attach to decides to give lettuce to its stockholders, this is called dividends * Retained requital: Money after dividends are paid out to stockholders * B/S: What association owes, range of re chief(prenominal)ing amount (stockholders equity) * explanation of Income: Profits earned * Stock set revolves around three briny functions: Companys payment outlook, dividend prospects & financial condition * P/E Ratio: comprise of the stock / EPS. A in wax P/E is an index number that investors believe the company way on grow.

Big grammatical constituent: Interest Rates * Dividend flag/Yield: yearly % return a dividend provides to the investor | Annual cash Dividend Per treat / Price of the stock Chapter 3 Analyzing Your Company * make love the COMPANY, read 10k/10Q. Read I.S. / B.S. / disceptation of Cash Flows * Income averment: Presents the companys business results for the year. It displays the sales, costs, earnings over a 12-mo period * relaxation 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 expiration to get a full essay, order it on our website: Ordercustompaper.com

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