1. Chapter 13 Planning Equity Financing Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. Business is organized to achieve certain objectives

3. Business Strategy

4. Companies acquire funds from three sources

5. Two financing categories.

6. 13-6 What is the Risk of Debt Financing?

7. Debt-to-Equity Ratio

8. Times Interest Earned Ratio- earnings before interest and taxes divided by interest expense

9. 13-9 What is the Reward of Debt Financing?

10. Return on Owner’s Equity Ratio

11. Reward of Equity Financing

12. Risk of Equity Financing.

13. Equity Financing.

14. 13-14 What are the Advantages of Sole Proprietorships and Partnerships?

15. 13-15 What are the Disadvantages of Sole Proprietorships and Partnerships?

16. 13-16 What are the Advantages and Disadvantages of Corporations? Advantages Disadvantages

17. Pro forma Statement of Owners” (Partners) equity

18. 13-18 How do Partnerships Determine how Profits /Losses will be Allocated to the Partners?

19. Exercises

21. 13-21 What are the Types of Stock Issued by Corporations?

22. 13-22 What are the Most Common Preferences given to Preferred Stock?

23. 13-23 What are the Different “Numbers of Shares” Concerning Stock?

24. 13-24 What is Treasury Stock?

25. 13-25 What are the “Values” Associated with Stock?

26. 13-26 What Types of Dividends are Distributed?

27. 13-27 What are the 3 Dates Associated with Dividends?

28. 13-28 What is the Difference Between a Stock Dividend and a Stock Split?

29. Exercise 13-10

30. Exercise 13-13

31. Exercise 13-14