Corporate Finance Article and Summary
Write a 1 page summary of your views concerning a current article (no older than 7 days from 10/22/2015) related to Corporate Finance. Post both the summary and a copy of the article.
Week 1 Study Guide: Foundations of Finance
Readings and Key Terms
• Ch. 1 of Fundamentals of Corporate Finance
o Wealth
o Stakeholders
o Residual cash flows
o Bankruptcy
o Capital structure
o Capital markets
o Net working capital (NWC)
o Sole proprietorship
o Partnership
o Limited liability partnership (LLP)
o Limited liability company (LLC)
o Corporation
o Prviately held corporations
o Agency conflicts
o Agency costs
• Ch. 2
o Financial and real assets
o Primary and secondary markets
o Marketability
o Liquidity
o Private and public markets
o Market efficiency
o Financial intermediation
o Initial public offering (IPO)
o Real and nominal interest
• Ch. 3
o Generally Accepted Accounting Principles (GAAP)
o Book value
o Balance sheet
o Income statement
o Statement of cash flows
o Depreciation
o Treasury stock
o Market value
o Cash flows to investors
o Average and marginal tax rate
Content Overview
• Key financial decisions
o Key finance axioms
• Identify and define various axioms of finance, such as agency, financial intermediation, stakeholders, IPO, liquidity, and so on.
• Determine difference between nominal and real interest rates.
• Determine difference between private and public markets.
• Determine difference between financial and real assets.
• Understand financial intermediation.
o Finanacial statements
• Identify the components of a balance sheet.
• Explain the balance sheet identity and why it must balance.
• Describe how market values differ from book values.
• Identify the components of an income statement.
• Identify the basic income statement equation and the information it provides.
• Understand the calcualtion of cash flows from operating, investing, and financing activities required in the statement of cash flows.
• Understand the difference between marginal and average tax rates.
• Understand how each of the financial statements articulates with the other.
o Fundamental decisions in financial management
• Understand the concerns of capital budgeting, financing, and working capital decisions and how they affect the balance sheet.
• Organizational structures and forms
• Identify forms of business organization and their respective strengths and weaknesses.
• Determine types of business forms needed for specific business applications.
• Business goals
o Wealth maximization
• Identify agency conflicts.
• Know the concept of wealth maximization
• Understand the difference between profit and stock valuation.
• Identify the major factors that affect stock prices.
Is this the question you were looking for? If so, place your order here to get started!
