whereby a person or group succeeds in ousting a firm's management and
taking control of the company.
(Optimal) Capital Structure
of debt, preferred stock, and common equity that will maximize the firm's
of debt, preferred stock, and common equity with which the firm plans
to raise capital.
cash balance that a firm plans to maintain in order to conduct business.
that another company seeks to acquire.
of net income paid out as cash dividends.
Loss Carry-Back and Carry-Forward
corporate operation losses can be carried backward for 3 years or forward
for 15 years to offset taxable income in a given year.
income minus exemptions and allowable deductions as set forth in the
assets that fluctuate with seasonal or cyclical variations in sales.
of a firm's financial ratios over time; used to estimate the likelihood
of improvement or deterioration in its financial situation.
of one firm to buy the stock of another by going directly to the stockholders,
frequently (but not always) over the opposition of the target company's
Structure of Interest Rates
between bond yields and maturities.
value of an uneven cash flow stream.
tool used in time value of money analysis; it is a graphical representation
used to show the timing of cash flows.
Preferences for Consumption
of consumers for current consumption as opposed to saving for future
of earnings before interest and taxes (EBIT) to interest charges; measures
the ability of the firm to meet its annual interest payments.
that measures the firm's ability to meet its annual interest obligations
calculated by dividing earnings before interest and taxes by interest
charges: TIE = EBIT/I.
Assets Turnover Ratio
calculated by dividing sales by total assets.
from credit sales and recorded as an account receivable by the seller
and as an account payable by the buyer.
where a country imports more than it exports.
reduction that suppliers offer customer for early payment of bills.
balance associated with payments and collection; the balance necessary
for day-to-day operations.
issued by there federal government, sometimes referred to as government
control procedure in which an order is placed when one of two inventory-stocked
bins is empty.
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