Chapter 1 An Overview of Financial Management 4 Questions

Definition of Finance, Business Finance

Primary Goal of Business Finance (versus what it is not)

Agency Problem/Solutions: Conflicts Between Managers and Stockholders

Chapter 2 Financial Markets and Institutions 4 Questions

The Capital Allocation Process: 3 Channels

Financial Markets: 5 Ways to Classify

Financial Institutions: Commercial Banks/Investment Banks/Mutual Funds/

Financial Services Corporations

Chapter 3 Financial Statements, Cash Flow and Taxes 4 Questions

The Balance Sheet, The Income Statement,

The Cash Flow Statement

Compute and Interpret: Free Cash Flow

Chapter 4 Analysis of Financial Statements 4 Questions

Compute and Interpret:

Liquidity Ratios/Asset Management Ratios/

Debt Management Ratios/Profitability Ratios/

Market/Value Ratios

Chapter 5 Time Value of Money 4 Questions

Compute and Interpret:

Single Future Value Cash Flow Problem

Annuities (ordinary only)

Multiple Future Value Cash Flow: Uneven/Unequal/Limited N

Chapter 6 Interest Rates 4 Questions

Cost of Money: Four Factors

Compute and Interpret an Interest Rate

The Term Structure of Interest Rates

Macroeconomic Factors That Influence Interest Rate Levels

Chapter 7 Bonds and Their Valuation 4 Questions

Who Issues Bonds/Key Characteristics of Bonds

Compute and Interpret: For Annual Bonds and Semi-Annual Bonds

Price, Yield To Maturity

Bond Credit Ratings

Chapter 8 Risk and Rates of Return 4 Questions

Calculate Expected Return for a Stock/Company

Stand-Alone Risk: Compute and Interpret Standard Deviation

Diversifiable Risk

Capital Asset Pricing Model (CAPM): Compute/Interpret a CAPM problem