1. FIN220 1st Midterm Review

2. Ch 1 An Overview of Financial Management
What is Finance?
Finance within an Organization
Corporate Finance, Capital Markets & Investments
Forms of Business Organization
Corporation (Advantages vs Disadvantages)
Limited Liability

3. Ch 1 An Overview of Financial Management
Stock Price & Shareholder Value
Shareholder Wealth Maximization
Intrinsic Value, Stock Price, & Executive Compensation
Intrinsic Value Vs. Stock Price
Equilibrium
Conflicts Between Managers, Stockholders & Bondholders
Managers vs Shareholders
Stockholder vs Bondholder

4. Ch 2 Financial Markets & Institutions
The Capital Allocation Process
Financial Markets (Types of Market &Derivatives)
Financial Institutions
The Stock Market (The Market for Common Stock)
Types of Stock Market Transactions
IPOs
Stock Market Returns
Stock Market Efficiency

5. Ch 4 Analysis of Financial Statements
Trend Analysis, Industry Analysis & Benchmarking
The DuPont Equation
Uses & Limitations of Ratios
Looking Beyond the Numbers
Potential Misuses of ROE

6. Ch 4 Ratio Analysis Liquidity Ratios (Current Ratio & Quick Ratio)
Asset Management (Inventory TO, DSO, FATO & TATO)
Debt Management Ratio
TIE & Debt Ratios (Total Debt to Total Assets)
Effect of Debt (Leverage) on ROE
4. Profitability Ratios
Operating Margin, Profit Margin, BEP
ROA &ROE
Market Value Ratios
Price/Earnings (P/E) & Market/Book Ratio (M/B)