Financial management

There are no corporate or personal income tax

Investors are assumed to be rational and behave accordingly

There is no corporate tax though there are personal income tax

Capital markets are perfect

self-held stock

privately held stock

publicly held stock

enactive held stock

cash only

cash and bank balances

cash and near cash assets

fixed assets

management change dividends to protect their seats

dividend changes are thought to signal future expectations

MM state that absolute level of dividends is irrelevant

changes determine the level of borrowing

Sales

Debtors

Debt collection period

All of the above

price earning ratio

earning price ratio

pricing ratio

earning ratio

savings associations

loans associations

preferred and common associations

savings and loans associations

binomial parity relationship

put parity relationship

put option parity relationship

put call parity relationship

repaid schedule

depreciated schedule

amortization schedule

appreciated schedule

expected risk

beta risk

industry risk

returning risk