FIN 360 Midterm: Fall 2016 Midterm Guidelines verison
3 Nov 2016
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Document Summary
Know how the different groups that use financial statements differ regarding their perspective of firm performance and the key measures of determining firm performance. Managers and employees: want information on the financial condition, profitability, and prospects of their companies as well as comparative financial information on competing companies. Investment analysts and information intermediaries: interested in predicting companies" future performance. (to make money) Creditors and suppliers: to help determine loan terms, loan amounts, interest rates, and required collateral. Shareholders and directors: to assess the profitability and risks of companies. Customers and strategic partners: demand accounting information to assess a company"s ability to provide products and services as agreed and to assess the company"s staying power and reliability. Regulators and tax agencies: for antitrust assessments, public protection, price setting, import-export analyses, and establishing tax policies. Voters and their representatives: for policy decisions. Know what the goal of security analysis is. Security analysis: increases returns for investors who take on certain risks.
