FRL 300 Midterm 1 Topics

FRL 300 Midterm 1 Topics - FRL 300 Midterm 1 Topics...

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1 FRL 300 Midterm 1 Topics Coverage: Chapter 1-5-6 Chapter 1: Introduction to Corporate Finance 1. Major types of financial management decisions Capital budgeting Capital structure Working capital management 2. The goal of financial management Maximize shareholder wealth (What is wrong with profit maximization as an objective? Why is stockholder wealth maximization a better objective?) 3. Agency problems Characteristics of an agency relationship Potential agency conflicts in a corporation (What is the agency problem and how does it relate to stockholder wealth maximization?) 4. Financial markets Primary market: public offering vs. private placement Secondary market: auction market vs. dealer market Chapter 5: Time Value of Money 1. Define and compute simple vs. compound Interest 2. Future value and compounding Compute the future (compound) value of a lump sum investment 3. Present value and discounting: Compute the present value of a lump sum investment
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This note was uploaded on 01/13/2012 for the course FR 403 taught by Professor Hoffman during the Spring '11 term at Central Washington University.

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FRL 300 Midterm 1 Topics - FRL 300 Midterm 1 Topics...

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