MGMT 3320 Chapter Notes - Chapter 2: Contingent Liability, Accounts Receivable, Income Statement

• School: University of Guelph
• Department: Management
• Course: MGMT 3320
• Professor: Elliot Currie

Document Summary

Earnings per share = earnings available to common shareholders number of shares outstanding: past trends and forecasts of eps are important for investors, measure of value. Payout ratio = dividend per share earnings per share: shows what percentage of earnings is paid out immediately as dividends. Dividend yield: dividend per share market share price. Balance sheet: a snapshot picture that indicates a rm"s , holdings, obligations, measure of its value at a point in time, public companies all have to express this in ifrs, which allows for comparison. Interpretation of balance sheet items: for private companies, assets are listed in order of liquidity, public companies list non-current assets rst, then current assets. Liquidity: measures how quickly an asset can be converted to cash: current sets can be converted to cash within a year, financial manager must monitor cash resources carefully and plan to nance any increases, assets, marketable securities.