Review Notes by 62970Kr

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									   Review Notes


    AGEC 325
    Spring 2009
EXAM 2 – Wed April 15
10 Enterprise budgeting

 1. What an enterprise budget is and
 purposes for which it may be used
 2. Parts and structure
 3. Know how to do break-even analysis
 from an enterprise budget
 4. Know how to use budgets to estimate
 maximum land rents, and “returns to ----”
 and “returns over ---”
11 Partial budgeting

 1. What it is and purposes for which it is
 used
 2. Components, organization, and
 structure
 3. Be able to develop one for a simple
 problem
13 Cash flow budgeting

 1. What it is
 2. What it is used for
 3. Structure
14 Forms of business organization

 A. Forms of business organization

    For each know something about the
    following:
    1. Organization and characteristics
    2. Advantages
    3. Disadvantages
17 Investment analysis

 1. Know the definitions, uses, and how to
 determine or calculate:
 Present value, Net present value, Internal
 rate of return, Discount rate, Financial
 feasibility, Economic feasibility

 2. Know the role of time value, inflation,
 and risk in determining an appropriate
 discount rate.
            Capital 19
Chapter 19 Chapter and the Use
  Credit
ofCapital and the Use of Credit
     – What is capital and what are its sources? What are th
     – What is capital and what are its sources? What are
       their relative importance?
     – What is credit?
     – Know what the cost of capital is
     – Know how to decide how much capital to use
     – Know what leverage is, how it is measured and what
       circumstances favor being highly leveraged.
     – Know how to describe advantages /disadvantages of
       different types of loans by length, use, security and
       repayment plan
     – Know the sources of loan funds and their relative
       importance for different types of loans Know what the
       cost of capital is
     – Know how to decide how much capital to use
Chapter 20 Land -- Control and
     Chapter 20 Land –
    Control and Use Use
    – Be able to explain important factors in land
      purchase decisions, methods of land valuation,
      and the legal aspects of a land purchase
    – Know the advantages and disadvantages of
      ownership, cash leasing and share leasing
    – Be able to demonstrate how an equitable share
      leasing arrangement can be developed

								
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