BUAD 202 Study Guide - Final Guide: Sirius Satellite Radio, Social Loafing, Public Offering
Document Summary
Finance decides what to do with the accounting information and cash flow. Maximize the value of the firm to its owners. Plan for the effective use of financial resources. Determine the appropriate strategy to meet the firm"s long term financial needs. Ceo- responsible for correctness that the company puts out. Ability of a company to meet short term debt obligations, the higher the ratio, the more liquid a company"s assets are. Shows how many times a company"s inventory has been sold and replaced over a period, high ratio is more successful. Earnings per share- (net income-dividends)/outstanding stock shares. Tells how much profit was generated on a per share basis, indicates growth. Debt to assets- total liabilities/ total assets. Indicates what proportion of the company"s assets are being financed through debt. Return on equity- net income/ shareholder"s equity. Indicates what return a company is generating on the firm"s investments/assets. They are important to estimate and understand where a business is financially.
