Chapter 01 - 007 Flashcards
A company exists to …
Z
The 4 major activities of a company
P15
1.
2.
3.
4.
Business plan
- Capture …
2. Assists …
Sources of information on a company’s business plan
P15
Z
How can the information from financial statements help us?
P16
Z
Why does a company require financing?
Z
Financing activities
P16
- Refers to …
2.
Main sources of external financing
1.
2.
Issues considered by a company in looking to financial markets
1.
2.
3.
4.
Impacts of the decisions on those issues Ina the prior question
P16
Z
Return
P16
Z
Earnings distribution
Z
How can dividends be paid
Z
Dividend payout
Z
Earnings reinvestment
Z
Earnings retention rate
Z
Forms of equity financing
P16
1.
2.
3.
Private offerings of shares
P16
Z
The main benefit of public offerings of shares
Z
Two types of creditors
1.
2.
Debt financers
Z
Operating creditors
Z
How is creditor financing different from equity financing
P17
1.
2.
3.
