Introduction to Finance

partial financing, 492
f
turnover, 429–430
Fixed assets turnover ratio, 429
Fixed capital, consumption, 170
t
Fixed charged coverage, calculation, 
434–435
Fixed costs, 585
Fixed-rate mortgages
defined, 183
holders, benefits, 183
Flexible exchange rate, 151
defined, 133
system (1973-present), 133
Float
defined, 476
processing, 484
types, 476–477
Floor brokers, 315
Flotation, defined, 299
Flotation costs, defined, 308, 573
Follow-up stage, defined, 524
Ford, Gerald, 85
Ford Motor Company
balance sheet, 401
t
common stock, 260–261
insolvency, 401
Foreign assets, U.S. government ownership, 
150
Foreign central banks, deposit levels 
(change), 124
Foreign Corrupt Practices Act (FCPA), 144, 
145
Foreign Credit Insurance Association 
(FCIA), credit insurance policies 
provision, 135
Foreign currency, change (calculation), 138
Foreign customers, finding, 135
Financial management
careers, 16
Financial markets
characteristics, 14–16
conditions, 593
defined, 4
information efficient characteristic, 9
interest rate determination, 192
f
securities pricing efficiency, finance 
principle, 8, 9
types, 15–16
Financial officers, compensation, 409–410
Financial planner
assistant, career, 17
career, 353
Financial plans, strategy (linkage), 404
Financial ratios, types, 425
Financial return and risk concepts
Financial risk
defined, 350
effects, 585
t
Financial statements, 399–401
analysis, 423–424
automobile bailout, relationship, 400–401
provision, 391
Financial storm, government reaction, 
108–109
Financial system
characteristics, 11–12
collapse, Fed avoidance, 204
components, 12–14, 12
f
defined, 11
financial assets
marketing, 13–14
transfer, 14
financial functions, 12–14, 12
f
graphic view, 11
f
money
creation, 13
transfer, 13
overview, 12–14
requirements, 11–12
savings
accumulation, 13
lending/investing, 13
Financing. 
See also
Internally generated 
financing
activities, cash flows, 544
approaches, 493–494
attraction/acquisition, 383
costs, weighted average, 570
exporter, usage, 147
exporter bank, usage, 147
importer
bank, usage, 147–148
example, 148–149
mix, sales trend (impact), 497–498
net percent, 254
f
requirements (
See
External financing 
requirements)
short-term sources, 469
sources, 573
cost, 272
strategies
example, 493
f
guidelines, 592–593
Finance
areas, 148
careers, 16–18
opportunities, 17, 120
defined, 4
distinctions/separations, 4
examination, 3–6
organization chart, 409–411
principles, 8–11
study
areas, 1–2
plan, 18
reasons, 6–7
themes, 5–6
Finance companies, defined, 51
Finance firms
defined, 48, 51
role of, 51
Financial account, defined, 152
Financial Accounting Standards Board 
(FASB), 389
Financial advisor, career, 353
Financial analysis
DuPont system, 441
f
Financial analyst, career, 16
Financial assets
defined, 26, 253
demand, change, 139
historical return/risk, 343–345
marketing, 13–14
short-term accumulation, 177
transfer, 14
Financial calculators, programming, 
221–222
Financial contracts, 225
Financial crisis (2007–2008), 6, 22–23, 71
borrowing-related cultural shift, 185–186
development, 143
examination, 185–186
factors, 185
financial institution distress, 46–47
U.S. central bank response, 77–78
Financial crisis-related activities, 112
Financial environment, 3–20
defined, 4
elements of, 5
illustration, 5
f
valuation, relationship, 287–289
Financial flexibility, 593
Financial goals, 383
Financial Industry Regulatory Authority 
(FINRA), formation, 321
Financial institutions
career opportunities, 66
defined, 4
distress, 46–47
economies, markets, and, 7
financial system and, 12
roles, 47–51
types, 47–51, 48
f
Financial Institutions Reform, Recovery, and 
Enforcement Act (FIRREA), passage, 60
Financial intermediation, defined, 47
Financial leverage ratios, 425, 432
analysis, 432–435
defined, 432

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626
INDEX
Greece, European Union and, 40
Greenspan, Alan, 85
Gross domestic product (GDP)
calculation, 167
capital formation, 166–171
components, 167–168
consumption (2006/2009/2012/2015), 168