Study notes By Zhipeng Yan Corporate Finance Stephen A. Ross‚ Randolph W. Westerfield‚ Jeffrey Jaffe Chapter 1 Introduction to Corporate Finance ..................................................................... 2 Chapter 2 Accounting Statements and Cash Flow.............................................................. 3 Chapter 3 Financial Markets and NPV: First Principles of Finance................................... 6 Chapter 4 Net Present Value....................................
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Chapter One Basic Areas of Finance: 1. Corporate Finance = Business Finance 2. Investments a. Work with financial assets such as stocks and bonds. b. Value of financial assets‚ risk verses return and asset allocation. c. Job opportunities. 3. Financial Institutions a. Companies that specialize in financial matters. i. Banks – Credit unions‚ savings‚ and loans. ii. Insurance Companies iii. Brokerage Firms b. Job Opportunities. 4. International Finance a. An area of specialization within each of the
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SOLUTION MANUAL Solutions to end-of-chapter problems Engineering Economy‚ 7th edition Leland Blank and Anthony Tarquin Chapter 1 Foundations of Engineering Economy 1.1 The four elements are cash flows‚ time of occurrence of cash flows‚ interest rates‚ and measure of economic worth. 1.2 (a) Capital funds are money used to finance projects. It is usually limited in the amount of money available. (b) Sensitivity analysis is a procedure that involves changing various estimates to see if/how they affect
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Advanced Corporate Finance I SS 2012 Problem Set 1 Valuing Cash Flows Problem Set 1 Valuing Cash Flows Exercise 1 (Ex. 11.2 - 11.6 GT): Assume that Marriott’s restaurant division has the following joint distribution with the market return: Market Scenario Bad Good Great .25 .50 .25 Probability Market Return (%) -15 5 25 YR 1. Cash Flow Forecast $40 million $50 million $60 million Assume also that the CAPM holds. 11.2 Compute the expected year 1 restaurant cash flow for Marriott. 11.3 Find
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of a firm’s owners and its managers” (Megginson & Smart‚ 2009). It then defines agency costs as dollar costs that arise because of this conflict. In the corporate structure‚ stockholders are the owners of the firm‚ and they elect a board of directors to oversee the firm and help protect their investment. The board then hires the right corporate managers to run the firm with the goal of maximizing the wealth of the shareholders. In a vacuum‚ this is a perfect framework by which to run a corporation;
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U NIVERSITY OF L UXEMBOURG ‚ L UXEMBOURG S CHOOL OF F INANCE Corporate Finance Master in Economics and Finance 2nd Assignment - Stock valuation + Cost of capital Due on 10/3/2014 E XERCISE 1 Starr Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year‚ indefinitely. If investors require a 12 percent return on the stock‚ what is the current price? What will the price be in three years? In 15 years? E XERCISE
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Lecture 1 （Chapter 1） Introduction to Corporate Finance McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies‚ Inc. All rights reserved. 会计循环 会计循环过程 原始凭证 记账凭证 记账 过账结算 试算平衡 报表编制 总账 分类账 明细账 基本原则：账证相符、账账相符、账表相符、账实相符 1-1 财务管理的基本框架 企业规模 理财环境 目标利润 筹资渠道 财务策略 财务预算 筹资方式 财务目标 短期投资 股利理论 总体分析 营运资金管理 股利政策 指标分析 成本控制 股利方式 综合分析 资金预测 资金筹集 资金投放 收益分配 财务分析 时间价值 资金成本 财务关系 风险分析 资金结构 实业投资 税务政策 分析方法 证券投资 发展规模 分析报告 财务关系 财务管理制度 1-2 财会管理的构架
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Corporate finance chapter 1 Concept questions: 1.Agency Problems Who owns a corporation? Describe the process whereby the owners control the firm’s management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context‚ what kinds of problems can arise? 2.Not-for-Profit Firm Goals .Suppose you were the financial manager of a not-for-profit business (a not-for-profit hospital‚ perhaps). What kinds of goals do you think would be appropriate
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The Objective in Corporate Finance “If you don’t know where you are going‚ it does not matter how you get there” Aswath Damodaran Stern School of Business Aswath Damodaran 2 First Principles Invest in projects that yield a return greater than the minimum acceptable hurdle rate. • The hurdle rate should be higher for riskier projects and reflect the financing mix used - owners’ funds (equity) or borrowed money (debt) • Returns on projects should be measured based on cash flows
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ADM 3350 M Winter 2010 CORPORATE FINANCE MIDTERM EXAMINATION – February 10th‚ 2010 Professor: Kaouthar LAJILI‚ PhD.‚ CGA Duration: 1 hour and 30 minutes Part I 15 Part II 35 TOTAL 50 NAME: __________________________________________ STUDENT #: ________________________ PART I: Multiple Choice Questions (15 points) Please circle the correct answer 1. In an EPS-EBI graphical relationship‚ the slope of
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