Corporate Finance-intro

Corporate - Corporate Finance Corporate Finance Instructor Jiandong Ren Dept of Statistical and Actuarial Sciences UWO Corporate Finance Corporate

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Unformatted text preview: Corporate Finance Corporate Finance Instructor: Jiandong Ren Dept. of Statistical and Actuarial Sciences UWO Corporate Finance Corporate Finance • Corporation • • • • • • – Definition: • A corporation is a legal entity separate from the persons who own it or the persons – In North America, almost all large and medium­sized businesses are organized as corporations. who manage or operate it Five common characteristics of the modern corporation, according to Harvard University Professors Hansmann and Kraakman are: delegated management, in other words, control of the company placed in the hands of a board of directors limited liability of the shareholders (so that when the company is insolvent, they only owe the money that they subscribed for in shares) investor ownership, which Hansmann and Kraakman take to mean, ownership by shareholders.[4] separate legal personality of the corporation (the right to sue and be sued in its own name) transferrable shares (usually on a listed exchange, such as the London Stock Exchange, New York Stock Exchange or Euronext in Paris) Corporate Finance Corporate Finance • Finance – What is finance? – Which real assets the firm should invest in (Investment)? – How to raise the cash to pay for them (financing)? Corporate Finance Corporate Finance • Text Book – Brealey, R.A.; and Myers, S.C., Principles of Corporate Finance (9th Edition), 2007, McGraw­Hill, – – – – Investment (evaluation of projects) Risk Financing Decisions and Market Efficiency Risk management • Materials will be covered Corporate Finance Corporate Finance • Evaluation: – Midterm 1: October 9, 20%. – Midterm 2: November 13, 20%. – Homework: 5% – Group Project: 10% • Presentation 5% and report 5%. – Final: 45%. Corporate Finance Corporate Finance • Missed test – Corporate Finance Corporate Finance • Office hours: MWF 2:20pm—3:20pm. • WebCT – My office is at 219 WSC. – My email address: [email protected] ...
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This note was uploaded on 01/29/2011 for the course ACCT 2555 taught by Professor Ren during the Winter '10 term at UWO.

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