Week 3: Factoids Flashcards
Tax Cut and Jobs Act
2017 bill that brought wealth stored overseas back to the US by only taxing it by 15%
What fraud did Enron have?
They hid their liabilities
Why do you not reduce goodwill?
The value of goodwill does not necessarily go down over time, and is only derived during the acquisition of the business
What is the ratio when a hotel is profitable?
60% occupation
What is the loss of revenue on airlines?
90%
If you have 20% annual interest, how long will it take to pay off $200, paying $20 a month?
30 years
Carried interest
the percentage of a private equity or a hedge fund’s profit that its general partners receive as compensation, generally 20-25% (23%)
Taxed like capital-gains income
Raj
Ran one of the biggest hedge funds, Galleon, and got insider trading tips
FBI wiretaps a woman to give him tips which Raj uses, incriminating him
Crazy Eddie
1988 he sold electronics at his 4-5 stores
He took inventory from one store and brought it to the others when financial experts were analyzing his company’s value
Long Term Capital Management
1999 precursor to the financial crisis
Black Scholes model, options pricing
Government bails them out
Other comprehensive income
Statement before the income statement
Certain types of profits and losses the people who created accounting principles did not want everything to be put in an income statement. Tend to be things that are hard to control of the company such as currency exchange rates
Non-controlling interest
Owning less than 50% of outstanding shares
