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2 2 Objectives Understand the role that financial institutions play in managerial finance Contrast the functions of financial institutions and financial markets Describe the differences between the capital markets and the money markets. 7-. 2. Learning Goals. LG1 Differentiate between debt and equity.. LG2 Discuss the features of both common and preferred stock.. LG3 Describe the process of issuing common stock, including venture capital, going public and the investment banker.. 15-. 2. Objectives. Review . accounts payable, the key components of credit terms, and the procedures for analyzing those terms.. Describe . interest rates and the basic types of unsecured bank sources of short-term loans. 14-. 2. Objectives. Understand . working capital management, net working capital, and the related trade-off between profitability and risk. .. Describe . the cash conversion cycle, its funding requirements, and the key strategies for managing it. 14-. 2. Objectives. Understand . working capital management, net working capital, and the related trade-off between profitability and risk. .. Describe . the cash conversion cycle, its funding requirements, and the key strategies for managing it. The Normal Distribution. © 2010 Pearson Prentice Hall. All rights reserved . 7-. 2. © 2010 Pearson Prentice Hall. All rights reserved . Relative frequency histograms that are symmetric and bell-shaped are said to have the shape of a . 10-. 2. Objectives. Understand . the key elements of the capital budgeting process.. Calculate. , interpret, and evaluate the payback period.. Calculate. , interpret, and evaluate the net present value (NPV) and economic value added (EVA. 9-. 2. Objectives. Understand the basic concept and sources of capital associated with the cost of capital.. Explain what is meant by the marginal cost of capital.. Determine the cost of long-term debt, and explain why the after-tax cost of debt is the relevant cost of debt.. © 2012 Pearson Prentice Hall. All rights reserved.. 8-. 1. © 2012 Pearson Prentice Hall. All rights reserved.. 8-. 2. Risk and Return Fundamentals. In most important business decisions there are two key financial considerations: risk and return.. 11-. 2. Objectives. Discuss relevant cash flows and the three major cash flow components.. Calculate the initial investment, operating cash inflows, and terminal cash flow associated with a proposed capital expenditure.. 4-. 2. Objectives. Understand . tax depreciation procedures and the effect of depreciation on the firm. ’. s cash . flows. Discuss . the firm. ’. s statement of cash flows, operating cash flow, and free cash . 9-. 1. Variable and absorption costing, explaining operating-income differences . Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2011 are:. 1. 1. . . Committed to Shaping the Next Generation of IT Experts.. Windows. Copyright © 2008 Pearson Prentice Hall. All rights reserved.. 2. 2. Objectives. Identify components on the Windows desktop. 1. 1. . . Committed to Shaping the Next Generation of IT Experts.. Windows. Copyright © 2008 Pearson Prentice Hall. All rights reserved.. 2. 2. Objectives. Identify components on the Windows desktop. © 2012 Pearson Prentice Hall. All rights reserved. 5- 2 Objectives Discuss the role of time value in finance, the use of computational tools, and the basic patterns of cash flow. Understand the concepts of future value and present value, their calculation for single amounts, and the relationship between them