ACCT-311 Lecture 2: acct2
1 Apr 2016
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Assets-in-place the land, buildings, machines, and inventory that the firm uses in its operations to produce its products and services. Bankruptcy and insolvency act (bia) one of two fed- eral acts governing bankruptcy and reorganization in canada 17 basic earning power (bep) ratio calculated by dividing earnings before interest and taxes by total assets. Shows the raw earning power of the firm"s assets, before the influence of taxes and leverage 6 behavioural finance a field of study that analyzes investor behaviour as a result of psychological traits. It does not assume that investors necessarily behave rationally 21 benchmarking whenafirmcomparesitsratiostoother leading companies in the same industry 7 best efforts a type of contract with an investment banker when issuing stock. In a best efforts sale, the investment banker is only committed to making every effort to sell the stock at the offering price. D1/p0, is less risky than the g component in the total expected return equation rs.
