Net profit suitable financial policy such as capital

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Unformatted text preview: maximized? Net profit?) • 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 (2) (1) Financial Firm's 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.

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