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A snapshot of the summary  Fundamentals of Corporate Finance

2 Introduction to Financial Statement Analysis

2.4 The Income Statement

How do you calculate the Leverage Ratio? (also Interest coverage ratio (TIE))Operating Income devided by Interest Expense

5 Interest Rates

5.1 Interest Rate Quotes and Adjustments

When you buy a car with borrowed money, of what is the interest the price?The price to be able to convert money paid in the future to a car right now

Why is it important to convert interest rates to the same time unit before comparison?Because you cannot compare a daily interest rate with a yearly interest rate

What is a different name for the effective anual rate?The annual percentage yield

What is the effective annual rate?The effective interest paid in a year time unit

How do you calculate the equivalent interet rate at a different period length? E.g. EAR of r to monthly, or 5 yearly?(1+r)^n  1
So for monthly n=1/12
For 5 yearly n=5 
What does the annual percentage rate do with compounding?It doesn't take it into account

What is the actual effective interest rate of a 6% APR compounded monthly?6/12 = 0.5 monthly interest
1.005^12  1 = 6.17% after 12 month 
Can the APR be used as a discount rate?No, you have to take compounding into account

5.2 Application: Discount Rates and Loans

What is a amortizing loan?A loan with equal payments that comprise interest and paying back part of the loan
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The following topics are covered in this summary

loan, future, rate

interest, rate, relationship

bond, rate, payment

voting, stock, cumulative

irr, projects, flows

incremental, earnings, tax

cash, depreciation, flows

value, asset, project

breakeven, ebit, analysis

option, decision, delayoption

firms, earnings, eps1

risk, independent, returns

risk, stocks, measured

portfolio, market, ri

market, beta, return

firm, debt, wacc