公司理财
名词解释：
1. Capital budgeting : capital budgeting to describe the process of making and managing expenditures on long-lived assets.
2. Capital structure: capital structure represents the proportions of the firm’s financing from current and long-term debt and equity.
3. Net working capital: net working capital is defined as current assets mius current liabilities.
4. debt service:debt service is interest payments plus repayments of principal (that is ,retirement of debt).
5. operating cash flow:operating cash flow ,defined as earning before interest plus depreciation minus taxes ,measures the cash generated from operations not counting capital spending or working capital requirements.
6. compound value:compound value is the value of a sum after investing over one or more periods.
7. net present value:NPV is the present value of future cash flows minus the present value of the cost of the investment.
8. discounting :the process of calculating the present value of a future cash flow is called discounting.
9. stated annual interest rate:the stated annual interest rate is the annual interest rate without consideration of compounding.
10. perpetuity:is a constant sream of cash flows without end.
11. Sensitivity Annlysis:Sensitivity analysis examines how sensitive a particular NPV calculation is to changes in underlying assumption.Sensitivity analysis is also known as what-if analysis and bop(best,optimistic and pessimistic )analysis.
12. honogoneous expectation :the useful simplifying assumption in a world where investors have access to similar sources of information.
13. Beta coeffinlent :the beta coeffinient tells us the response of the stock’s return to a systematic risk.
14. tender offer:a tender offer is a public offer to buy shares of a target firm.
简答题：
1. Why do you think most long-term financial planning begins with sales forecasts ?Put differently ,why are future sales the key input?
ANSWER:
deductibleThe reason is that,ultimately ,sales are the driving force behind a business.A firm’s assets,employees,and,in fact,just about every aspect of its operations and financing exist to directly or indirectly support sales.Put differently,a firm’s future need for things like capital assets,employees,inventory,and financing are determined by its future sales level.
2. Both ROA and ROE measure profitability.Which one is more useful for comparing two companies ?Why?
ANSWER:
ROE is a better measure of the company’s performance.ROE shows the percentage return for the year earned on shareholder investment.Since the goal of a company is to maximize shareholder wealth,this ratio shows the company’s performance in achieving this goal over the period.
3. Which was the biggest culprit here:Too many orders,too little cash ,or too little production capacity?
ANSWER:
All three were important ,but the lack of cash or ,more generally ,financial resources,ultimately spelled doom,An inadequate cash resource is usually cited as the most common cause of small business failure.
4. You are evaluating project A and project B .Project A has a short period of future cash flows,while project B has relatively long future cash flows.Which project will be more sensitive to changes in the required return ?Why ?
Answer:
Project B’s NPV would be more sensitive to changes in the discount rate.The reason is the time value of money .Cash flows that occur further out in the future are always more sensitive to changes in the interest rate.This sensitivity is similar to the interest rate risk of a bond.
5. In our capital budgeting examples ,we assumed that a firm would recover all of the working capital it invested in a project in a project .Is this a reasonable assumption ?When might it not be valid ?
Answer:
It’s probably only a mild over-simplification.Current liabilities will all be paid,presumably.The
cash portion of current assets will be retrieved.Some receivables won’t be collected,and some inventory will not be sold,of course .Counterbalancing these losses is the fact that inventory sold above cost (and not replaced at the end of the project’s life)acts to increase working capital.These effects tend to offset one another.
6.”when evaluating projects ,we’re only concerned with the relevant incremental aftertax cash flows.Therefore,because depreciation is a noncash expense,we should ignore its effects when evaluating projects.”Critically evaluate this statement.