Across
- 3. Markets, such as NYSE or NASDAQ, where shares of a corporation are traded between investors without the involvement of the corporation
- 5. Purchases of new property, plant, and equipment
- 8. the type of problem when managers, despite being hired as the agents of shareholders, put their self-interest ahead of the interests of those shareholders
- 9. A neutral third party, which corporations are required to hire, that checks a firm’s annual financial statements to ensure they are prepared according to GAAP, and provides evidence to support the reliability of the information
- 11. Payments made at the discretion of the corporation to its equity holders
- 13. A measure of the extent to which a firm relies on debt as a source of financing
- 14. The value of a cost or benefit computed in terms of cash today
- 15. A limited partnership without a general partner
- 16. A firm’s net income divided by the total number of shares outstanding (acronym)
- 18. The practice of buying and selling equivalent goods to take advantage of a price difference
- 20. a firm’s obligations to its creditors
- 21. Computing the return on an investment over a long horizon by multiplying the return factors associated with each intervening period
- 25. The person charged with running the corporation by instituting the rules and policies set by the board of directors
- 26. the type of market when a corporation issues new shares of stock and sells them to investors
- 27. The sheet that lists a firm’s assets and liabilities which provides a snapshot of the firm’s financial position at a given point in time
- 28. The difference in value between money received today and money received in the future; also, the observation that two cash flows at two different points in time have different values (acronym)
- 30. the identity that expresses return on equity as the product of profit margin, asset turnover, and a measure of leverage
- 31. The ownership or equity of a corporation divided into shares
- 32. institutions that provide financial services, such as taking deposits, managing investments, brokering financial transactions, or making loans
Down
- 1. A business owned and run by one person
- 2. a stream of equal cash flows that occurs at regular intervals and lasts forever
- 4. The ratio of a firm’s net income to the book value of its equity
- 6. The cash, inventory, property, plant, and equipment, and other investments a company has made
- 7. the market price per share times the number of shares
- 8. A stream of equal cash flows arriving at a regular interval and ending after a specified time period
- 10. The value of a cash flow that is moved forward in time
- 11. A yearly deduction a firm makes from the value of its fixed assets (other than land) over time, according to a depreciation schedule that depends on an asset’s life span
- 12. Finding the equivalent value today of a future cash flow by multiplying by a discount factor, or equivalently, dividing by 1 plus the discount rate
- 17. a firm’s earnings before interest and taxes are deducted (acronym)
- 19. A legally defined, artificial being, separate from its owners
- 22. A common set of rules and a standard for- mat for public companies to use when they prepare their financial reports
- 23. The difference between a firm’s current assets and current liabilities that represents the capital available in the short term to run the business (acronym)
- 24. A business owned and run by more than one owner
- 29. Profits made by the firm, but kept within the firm and reinvested in assets or held as cash