AFM101 Chapter Notes - Chapter 10&11: Asset, Reserve Requirement, Capital Structure

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Vlad Moisseykin

Document Summary

Conditions managemen t inluence repayment yearly obligaions tax beneits. There"s usually none unless special condiions have been agreed on. The company is never required to repay equity. The irm isn"t legally liable to pay dividends. Dividends are paid from ater-tax income and aren"t deducible. Financial leverage raio = average total assets / average shareholders" equity. Current raio = current assets / current liabiliies. Working capital = current assets current liabiliies. Quick raio = cash + short-term investments and net a/r over current liabiliies. Cash raio = cash + cash equivalents / current liabiliies. Accounts payable turnover raio = cogs / average a/p. Average cogs / day = cogs / 365. Average age of a/p = average a/p over average cogs / days. Present value of money the worth now so that it will be worth a certain amount in the future. To have ,000 upon four years, earning 12% compounded semi-annually . Pv factor = 0. 6274 (6% for 8 periods)