Chapter 1 - Wednesday, Friday - Week 1
Chapter 1 - Wednesday, Friday - Week 1 FIN 3010-001
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This 2 page Class Notes was uploaded by Anna Notetaker on Saturday August 29, 2015. The Class Notes belongs to FIN 3010-001 at Middle Tennessee State University taught by Gregory Nagel in Fall 2015. Since its upload, it has received 56 views. For similar materials see Business Finance in Finance at Middle Tennessee State University.
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Date Created: 08/29/15
Business Finance Fin 3010 Gregory Nagel Firms39 Goals gt Payback Promise gt 1 Bonds 2 Stocks 3 Capital investments Examples 1 Corporate nance business nance gt Nissan 2 Investments gt Stocks 3 Financial institutions gt Banks Insurance companies 4 International Finance gt Apple General Electric Capital budgeting is important because it will determine where you end up Working capital management is daytoday nancing Goal of nancing is to maximize stock price Corporate nance is in regards of corporations Stockbrokers work for large companies advising customers on what type of investments to consider and helping them make buying and selling decisions Pg 2 Financial advisors play similar roles as investors Portfolio managers invest and manage money for funds companies and other institutions The name Portfolio managers suggest managing money for investors Financial analysts rely heavily on marketing They often work hand in hand with one another One of the most important thing for management is strategy Capital budgeting is a process of planning and managing a rm39s long term investments This is when an investor tries to nd nancial opportunities that are worth more to the rm than the cost to acquire Basically that is will cost least now and bring more in the end Capital structure is a mix of debt and equity This is brought on by the rm asking two questions 1 How much should the rm borrow 2 What are the least expensive sources of the funds for the rm Working capital is the short term assets and liabilities Examples of this is inventory and money owed to suppliers by the rm In the end corporate nancial management is capital budgeting capital structure and working capital Questions done at the end of the week in class as review 1 What is the goal of US rms maximize stock price 2 What drove up the price of the investments that I sold to you the rst day of class the number or bidders and the risk uncertainty about receiving the promised cash 3 Two projects A and B each offer a single cash payout of 10000 in two years Project A is very rislq while Project B pays off as long as the USA does not go bankrupt in the next two years Which project would investors pay more for Project b
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