...Balance sheet view of the firm Assets Liabilities Current Liabilities Current Assets Long-term debt Fixed Assets 1. Tangible 2. Intangible Shareholders’ Equity 5 Introduction, cont. But we also need to understand… Capital markets Types of securities (stocks, bonds, options…) Trade-off between risk and return Pricing Taxes and government regulation 6 Financial markets Firms Curr assets Fixed assets Debt Equity Financial Markets Individuals Financial Intermediaries Government 7 Introduction, cont. Finance is really about value Firms Projects and real investments Securities Common characteristic Invest cash today in exchange for cash (hopefully) in the future Central question How do we create value through investment and financing decisions? 8 Types of questions Investment and financing decisions At the end of 1999, GM had $11.4 billion in cash. Should it invest in new projects or return the cash to shareholders? If it decides to return the cash, should it declare a dividend or repurchase stock? If it decides to invest, what is the most valuable investment? What are the risks? 9 General Dynamic Major contractor in the defense industry Doing well...
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...Midterm Study Guide Fin 5170 Fall 2009 The exam will consist on multiple choices, and problems and may be an essay question. I will ask a maximum of two questions taken from the following material covered in class: Chapter 1 • Describe the concept of agency problems and different ways to ameliorate agency problems in a corporation Chapter 3 • Example 3.7 (pages 65-66) • Use the concept of arbitrage to explain the price of Security A in table 3.8, and Security B in table 3.9). Compute the risk premium of both securities. • Example 3.10 in page 72 • Example 3.11 in page 74 • Problems 14, 17, 18 (pages 78-80) You will also have the opportunity to answer several questions from the next pages: Chapter 1 - The Corporation 1.1 The Four Types of Firms 2) Which of the following organization forms for a business does not avoid double taxation? A) Limited Partnership B) "C" Corporation C) "S" Corporation D) Limited Liability Company Answer: B 3) Which of the following organization forms has the most revenue? A) "S" Corporation B) Limited Partnership C) "C" Corporation D) Limited Liability Company Answer: C 4) Which of the following organization forms accounts for the greatest number of firms? A) "S" Corporation B) Limited Partnership C) Sole Proprietorship D) "C" Corporation ...
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...62118 0/nm 1/n1 2/nm 3/nm 4/nm 5/nm 6/nm 7/nm 8/nm 9/nm 1990s 0th/pt 1st/p 1th/tc 2nd/p 2th/tc 3rd/p 3th/tc 4th/pt 5th/pt 6th/pt 7th/pt 8th/pt 9th/pt 0s/pt a A AA AAA Aachen/M aardvark/SM Aaren/M Aarhus/M Aarika/M Aaron/M AB aback abacus/SM abaft Abagael/M Abagail/M abalone/SM abandoner/M abandon/LGDRS abandonment/SM abase/LGDSR abasement/S abaser/M abashed/UY abashment/MS abash/SDLG abate/DSRLG abated/U abatement/MS abater/M abattoir/SM Abba/M Abbe/M abbé/S abbess/SM Abbey/M abbey/MS Abbie/M Abbi/M Abbot/M abbot/MS Abbott/M abbr abbrev abbreviated/UA abbreviates/A abbreviate/XDSNG abbreviating/A abbreviation/M Abbye/M Abby/M ABC/M Abdel/M abdicate/NGDSX abdication/M abdomen/SM abdominal/YS abduct/DGS abduction/SM abductor/SM Abdul/M ab/DY abeam Abelard/M Abel/M Abelson/M Abe/M Aberdeen/M Abernathy/M aberrant/YS aberrational aberration/SM abet/S abetted abetting abettor/SM Abeu/M abeyance/MS abeyant Abey/M abhorred abhorrence/MS abhorrent/Y abhorrer/M abhorring abhor/S abidance/MS abide/JGSR abider/M abiding/Y Abidjan/M Abie/M Abigael/M Abigail/M Abigale/M Abilene/M ability/IMES abjection/MS abjectness/SM abject/SGPDY abjuration/SM abjuratory abjurer/M abjure/ZGSRD ablate/VGNSDX ablation/M ablative/SY ablaze abler/E ables/E ablest able/U abloom ablution/MS Ab/M ABM/S abnegate/NGSDX abnegation/M Abner/M abnormality/SM abnormal/SY aboard ...
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