1 Flashcards

1
Q

What is the capital structure

A

is the combination of the assets, liabilities and owners equity

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2
Q

what is the financial structure

A

is the right side of the balance: liabilities and owners equity

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3
Q

Financing

A

adquire products or assets that are not in your reach, providing fonds for a project or business activities

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4
Q

Leverage

A

use borrowed capital for an investment, expecting the profits made to be greater than the interest payable.

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5
Q

Bonds

A

securities where an investor lends money to a company or institution

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6
Q

Profitability

A

should offer the least cost of financing with the maximum returns

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7
Q

dividends

A

a sum of money paid regularly by a company to its shareholders out of its profits

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8
Q

interests

A

money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

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9
Q

Actions types

A

prefered stock, common stock

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10
Q

FUENTE
TAX SHIELD

A

external - long term

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11
Q

FUENTE
Assets selling

A

internal - short term

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12
Q

FUENTE
Leasing

A

external - long term

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13
Q

FUENTE
Factoring

A

external - short term

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14
Q

FUENTE
Bonds

A

external - long term

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15
Q

FUENTE
Commercial credit or trade credit

A

external - short term

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16
Q

FUENTE
Pledging

A

external - short term

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17
Q

FUENTE
Issuing

A

long term - external

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18
Q

FUENTE
Mortgage

A

long term - external

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19
Q

FUENTE
Commercial paper

A

short term - external

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20
Q

FUENTE
Bank credit

A

external - long term

21
Q

FUENTE
Debt

A

External - long and short term

22
Q

What are the requirements to issue the commercial paper

A

-A well known and big corporative
-that has prestige
-It commercializes in units of 25000 dollars

23
Q

importance of capital structure

A

it increase or decrease the company’s value

24
Q

flexibility

A

you decide with which you’re going to finance, with Owners equity or liabilities, or in other words, with internal or external sources. Some things can change on the capital structure

25
Q

Equity

A

its financing sources doesnt need to be paid back

26
Q

Compensating balances

A

most confusing arrangement

27
Q

Commercial creditor

A

suplier

28
Q

CAT

A

Costo Anual Total

29
Q

GAT

A

Gasto anual total

30
Q

GAT nominal

A

ganancia antes de la inflación

31
Q

GAT Real

A

GAT nominal - inflacion

32
Q

what is the reference rate

A

Minimum rate that all banks seek to be profitable. This is used in all countries

33
Q

What the reference rate is divided into

A

origin (internal or external) and term (long or short)

34
Q

Reference rate USA

A

PRIME

35
Q

Reference Rate UK

A

LIBOR (London Interbank offered rate)

36
Q

To ask a foreign credit is necessary to know its

A

refrecence rate

37
Q

what does leasing mean

A

financing source that consists of a owner of a given equipment or property that allows another party to make use of it in exchange of a payment or rent

38
Q

Types of capital structure

A

internal and external

39
Q

what is a debt

A

Loan that must be paid back with interest. It is typically cheaper because of tax deduction.

40
Q

Tax deduction

A

income - deductible * tax rate= total tax

41
Q

Short term financing advantage

A

interest rate on short term fonds is lower than that of long term fonds

42
Q

Factors that affect to the capital structure

A

size of company
nature of busines
cost of floating
debt equity ratio

43
Q

The largest provider for short term credit

A

commercial paper

44
Q

most importants securities

A

bonds
shares or stock

45
Q

MX Securities

A

CNBV (Comision nacional vancaria de valores)

46
Q

USA Securities

A

SEC (Securities comissions)

47
Q

Shares

A

security in which one invest money to own a stock that provides a part of the ownership of the firm

48
Q
A