FIN 3000 Chapters 1-3

chapters 1-3

capital budgeting

investment decisions

financial asset

Financial claims to the income generated by the firm’s real assets

real asset

Assets used to produce goods and services

primary market

sale of new securities

capital market

long term financing decisions

functions of financial intermediaries

raises money from investors and provides financing for individuals, companies, and other organizations

depreciation expense

allocate historical cost over the life of an asset

what will increase cash?

An issue of common stock

balance-sheet entries least likely to find a difference
between market value and book value?

Cash

secondary market

previously issued securities are traded

financial market

securities are issued and traded

money market

short-term financing

fixed-income market

debt securities (Ex. bonds)

equity market

equity securities (ex. common stock)