- Convertible bonds have both the attributes of ________ and __________
equity; debt
Pg. 540
- When the purchase price of another entity exceeds the book value of the entity's net assets the purchaser allocates the excess to identifiable assets and liabilities in order to revalue them to market value and any additional excess is allocated to __________
Goodwill
Pg. 601
- Card Sharks, Inc. sells baseball cards and other memorabilia. The company tries to maintain a cash balance equivalent to approximately 30 days of sales. Sales in 2011 amounted to $352,412 and the company expects growth in 2012 of 30% and in 2013 of 35%.
Given the information provided about Card Sharks, what is the company's 2013 projected annual sales?
352,412 * (1.30) = 458,135
458,135.60 * (1.35) = $618,483
Pg. 822
- All of the following are the fundamental bases for future payoffs to equity shareholders and share value except:
Depreciation
Pg. 761, 762
- Common-size financial statements recast each statement item as
a percentage of some "base number" on the financial statement in question
Pg. 778, 779, 780
- To develop forecasts of individual assets, the analyst must first link historical growth rates for individual assets to historical growth rates in __________________ and other activity-based drivers
Sales or Revenues
Pg. 783
- Sparky's forecasts that sales will grow by 25% in 2013 and that its cost of goods sold to sales ratio will be the same in 2013 as it was in 2012. If these assumptions prove correct and Sparky's inventory turnover ratio for 2013 increases compared to 2012, the level of inventory at the end of 2013 must be estimated to be _______________________ $39,191.
Less Than
Inventory turnover ratio = Inventory/Sales
- FCFE =
Net Income + Depreciation - Capex
- RE end
Beg RE + Net income - Dividends = Re end
- Residual Income
Book Value per share x capm rate = Required income - Forecasted income = Residual income
