Special Issues in
Chap 6 (6.5) & Chap 7 (7.3-7.4)
Your existing old machine will last 2 more years before
it breaks down. It costs $12,000 per year to operate.
However, you can replace it now with
Readings: Chap 9 &
Chap 4 (4.6) &
Common Stock - Basics
Common Stock - A share of common stock, or equity,
represents an ownership claim on a firm that has no
maturity and no promised payments. Investors who
own stock are calle
Readings: Chap 8
bonds, notes, bill and etc
Bonds: the basics
Bond - Security that obligates the issuer to make
specified payments to the bondholder.
Face Value (Par Value or Pr
Chap 2 & Chap 6 (6.1-6.4)
Whatre the two types of decisions that
managers have to make?
Separate capital budgeting decisions
(investment decisions) from financing