Chapter 4 & 5

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Across
  1. 3. current value of a future payment
  2. 5. how efficiently management is using the firm's assets to generate sales
  3. 8. when all the annuity payments have been shifted forward by 1 year
  4. 9. measures a company's economic profits, as opposed to its accounting profits, which includes as a cost not only interest expense but also the shareholders' required rate of return on their investment
  5. 10. if you only earn interest on your initial investment
  6. 12. a firm's net income divided by its common book equity
Down
  1. 1. a firm's current assets divided by it's current liabilities
  2. 2. when the series of payments occur at the END of each period
  3. 4. how effectively management is performing in day-to-day operations of generating revenues and controlling costs and expenses; in other words.
  4. 6. depositing or investing an equal sum of money at the end of each year for a certain number of years and allowing it to grow
  5. 7. a firm's ability to pay its bills on time
  6. 11. series of equal dollar payments for a specified number of years