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• suitable financial policy such as capital structure Topics of Corporate Finance
• Capital budgeting: What long-term investments (real
assets) or projects should the firm take?
– Chapters 2-5 have been covered in FINA2010.
– We will briefly review basic capital budgeting (Chapter 6), and will
discuss advanced capital budgeting (e.g., decision trees and real
options) • Working capital management
– How do we manage the day-to-day finances of the firm? Already
covered in FINA2010 or accounting • Capital structure
– Should we use more debt or more equity to finance our assets?
Related to the costs of capital
Related to options
Dif between US and HK • Dividends
– How much? Different types of dividends? Dif between US and HK. 4 8/29/2013
CUHK Prof Fong FINA3070 Figure 1.1: Flow of Cash between
Financial Markets and Firm's Operations
operations manager (3) Financial
(4a) markets (4b) (1) Cash raised from investors
(2) Cash invested in firm
(3) Cash generated by operations
(4a) Cash reinvested
(4b) Cash returned to investors Focus on stockholders
• A typical US corp...
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This document was uploaded on 02/02/2014.
- Spring '14