[FIN 2800] - Final Exam Guide - Everything you need to know! (27 pages long)
Document Summary
Fixed income: bonds with finite life, bonds with infinite life, preferred stock (no maturity) Pay: secured stock, unsecured stock, preferred stock, common stock. Exception: capital call partners force in more capital: can change dividend every year, anything you want/can afford. Estimate growth: historical averages, mistake: future will look like the past, internal growth rate, creation of pro forum financials, 4-5 years of balance/ income statements. Capital budgeting: process of evaluating and selcting long-term investments (focused on. Capital budgeting cash flow: how to evaluate projects: Free cash flow: cash available to be paid to debt and equity investors. Free cash flow = ebit(1-t) + d/a change in nwc cap ex. Fcf = [rev opex dep](1-t) + dep change in nwc - capex. Final year: always check to see if there"s a final year impact. Fcf final year = [rev opex dep](1-t) + dep + returned nwc + after tax salvaged new lta.
