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10 Cards in this Set
- Front
- Back
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finance
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The assessment of a firm’s financial condition and performance through calculations and interpretations of financial ratios developed from the firm’s financial statements.
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stock
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Shares of ownership in a company
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leverage
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Rising needed funds through borrowing to increase a firm’s rate of return
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cost of capital
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The rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders
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venture capital
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Money that is invested in new or emerging companies that are perceived as having a great profit potential
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risk/return trade off
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The principle that the greater the risk a lender takes in making a loan, the higher the interest rate required
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financial management
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The job of managing a firm’s resources so it can meet its goals and objectives
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equity financing
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Funds raised from the operations within the firm or through the sale of ownership in the firm
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debt financing
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Funds raised through various forms or borrowing that must be repaid
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break even analysis
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The process used to determine profitability at various levels of sales
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