Finance book reading

Finance book reading - Finance: Book Reading Chapter 1...

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Finance: Book Reading Chapter 1 Finance a Quick Look 4 Basic Areas o Corporate Finance o Investments (stocks and bonds) What determines the price of a financial asset such as a share of stock? What are the potential risks and rewards associated with investing in financial assets What is the best mixture of the different types of financial assets to hold? Can get into: Stockbrokers, Portfolio Management, Security Analysis o Financial Institutions o International Finance What is Business Finance? The Financial Manager Financial Management Decisions o Capital Budgeting- the process of planning and managing a firm’s long- term investments The financial manager tries to identify investment opportunities that are worth more to the firm than they cost to acquire. Value of cash flow exceeds the cost of an asset How much, when received, how likely to get cash, and evaluating the size, timing, and risk of future cash flows is the essence of CB o Capital Structure- The mixture of debt and equity maintained by a firm Financial manager has two concerns How much should the firm borrow? What are the least expensive sources of funds for the firm? How and where to raise the money. Long-term financing expenses can be considerable. Must choose
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This note was uploaded on 07/14/2008 for the course FNCE 3010 taught by Professor Donchez,ro during the Summer '07 term at Colorado.

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Finance book reading - Finance: Book Reading Chapter 1...

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