THEORY SUMMARY - 15082 Words

BMCF 5103 CORPORATE FINANCE Dr. Nguyen Thi Hoang Anh Lecture 1: An Introduction to Corporate Finance Contents ï‚ ·What is finance? ï‚ ·What is corporate finance? ï‚ ·The balance-sheet model of the firm ï‚ ·Capital budgeting ï‚ ·Capitalstructure ï‚ ·The firm and thefinancial markets ï‚ ·Forms of business organisation ï‚ ·The goals of a corporation ï‚ ·Agency relationships: stockholders versusmanagers, stockholders versus creditors ï‚ ·Managers’ actions to maximise stockholder wealth ï‚ ·Financial management and the firm Reading Brigham, E., and J. Houston, 2007, Fundamentalsof Financial Management, 11thedition,South-Western. Chapter 1. Ross, S., Westerfield, R. andJaffe(2010),Corporate Finance, 9thedition, McGraw−Hill, Chapter 1.†¦show more content†¦The firm and the financialmarkets (A) Firm issues securities to raise cash (the financing decision). (B) Firm invests in assets (capitalbudgeting). (C) Firm’s operations generate cash flow. (D) Cash is paid to government astaxes. (E) Retained cash flows are reinvested in firm. (F) Cash is paid out to investors in the form of interest and dividends. 9 Forms of business organisation ï‚ ·Sole proprietorship An unincorporated businessowned by one individual. Advantagesare (1) easy and inexpensive to set up, (2) subject to few government regulations and (3) avoids corporate taxation.Disadvantages are (1) difficult to obtain large amounts ofcapital,(2) unlimitedpersonalliability and (3) life of business constrainedby life of individual ï‚ ·Partnership An unincorporated business arrangement operated by two or more individuals. Same advantages and disadvantages as sole proprietorship, but added disadvantage that one partner’sliability must be borne by all other partners (although this could be considered an advantage). ï‚ ·Corporation A legal entity that is separate from its owners and managers.Advantages are (1) unlimited life, (2) easily transferred ownership and(3) limitedliability.Disadvantages are (1)earnings may be subjectto double (both corporate and personal) taxation and (2) setting up and running a corporation isShow MoreRelatedSix Sigma for Pizza5436 Words   |  22 Pagespizzas is sufficient to you â€Å" and â€Å"Can you find your favorite taste among the existing available choice of pizzas â€Å" were also included in the questionnaires and survey questions to customers. Below is the table summarizing the survey results: Summary of operation defects as identified in June 2003 survey Satisfactory Defect item Operation description level Frequency not acceptable 1 maintain pizza not less than 40 degree C not acceptable 2 advise pizza arrival time not acceptable 3 variationRead MoreBest Practices in Inventory Management84369 Words   |  338 Pagesstill colleagues who believe that inventory can be managed using a clear brain and common sense. It is unlikely that they would be happy with the same competency in their doctor or financial adviser. 2 B E S T P R AC T I C E I N I N V E N T O RY M A N AG E M E N T If you want to do better you need to train. This book is for the inventory control practitioner. With the techniques described many people have been able to manage their stock of inventory so that their customers are happierRead MoreCase Analysis : The Electric Central Mn Llc. D / B A Mike s Electric1085 Words   |  5 PagesProperty and also includes the land and the value of all of those assets contained thereon. Appellant has demonstrated that the Trial Court erroneously narrowed Appellant’s claimed measure of damages. The Trial Court first held in its first order on Summary Judgment that Appellant was entitled to elect his measure of damages. Appellant attempted to proceed thereafter. The Trial Court erred by accepting Respondent’s subsequent argument that because Appellant himself could not testify about the value ofRead MoreTale of 2 [Ppl2708 Words   |  11 PagesC O M M E N TA RY A Tale of Two Companies The Danone-Wahaha partnership once seemed ideal, but the companies’ relationship has deteriorated. What lessons can be learned from the dispute? Jingzhou Tao and Edward Hillier T he Danone-Wahaha dispute is a story of the relationship between two very different entities against a backdrop of incredible change. The dispute reveals many questions that China faces as it integrates into the world economy, such as what to do when rule of law leadsRead MoreBetrayal, the Only Truth that Sticks766 Words   |  3 PagesGuildenstern betray young Hamlet. They both try to convince the young prince to relieve his secret. â€Å"Rosencrantz: Good my lord, what is your cause of distemper? You do, surely, bar the door upon your own liberty if you deny your griefs to your friend. Hamlet: †¦O, the recorders: — let me see one. — to withdraw with you: — why do you go about to recover the wind of me, as if you would drive me into a toil?†(Hillegass). They wind up betraying Hamlet because they wanted to know why his depression spiraled out ofRead MoreAdvanced Financial Statement Analysis - Leons vs the Brick Essay4533 Words   |  19 PagesThe Brick Income Fund Comprehensive Analysis of Financial Performance Assignment #1 - Leon’s versus The Brick TABLE OF CONTENTS Page # Table of Contents †¦. Abstract †¦.. Report Outline †¦.. Introduction †¦.. Ratios – Financial Analysis †¦.. Summary †¦.. Bibliography †¦.. Appendices (A – J) †¦.. 2 3 4 5 6 23 25 26 Advanced Financial Statement Analysis Comprehensive Analysis of Financial Performance Assignment #1 - Leon’s versus The Brick Abstract This research paper is prepared for purposesRead MoreCoordinating Healthcare : Moving Away From A Silos2066 Words   |  9 Pagescan lead to poor patient outcomes (Davis, Devoe, Kansagara, Nicolaidis, Englander, 2012). Fragmented healthcare and communication deficits have been shown to have negative effects on patient care (Davis et al., 2012; Kaufman, McDonell, Cristofalo Ries 2012; Kripalani et al., 2007). Nursing organizations can bring about standardized discharge planning and standardized electronic medical records through political lobbying and targeted media campaigns to address these care deficits (Canadian InstituteRead MoreThird Party Proceeding (Rules of Court 2012)1979 Words   |  8 PagesProceedings – O 16 †¢ Third party notice – O 16 r 1 †¢ Application for leave to issue third party notice – O 16 r 2 †¢ Issue, service of and entry of appearance to third party notice – O 16 r 3 †¢ Third party directions – O 16 r 4 †¢ Default of third party – O 16 r 5 †¢ Setting aside third party proceedings – O 16 r 6 †¢ Judgment between defendant and third party – O 16 r 7 †¢ Claims and issues between a defendant some other party – O 16 r 8 †¢ Claims by third and subsequent parties – O 16 r 9 Read MorePaper13852 Words   |  56 Pagess t u d i e s a re f a m i l i a r t o m a rke t i n g e d u c a t o r s a n d t h e i r s t u d e n t s a s a teaching device. For example, the Harvard Business School’s cases are widely used to allow students to be emotionally involved and le ar n action-related analysis of real, complex situations (Christensen and Hansen, 1987). However, a l t h o u g h c a s e s t u d i e s c a n a l s o b e u s e d a s a re s e a r c h m e t h o d o l o g y ( E a s t o n , 1994a; Parkhe, 1993; Tsoukas, 1989;Read MorePaper13852 Words   |  56 Pagess t u d i e s a re f a m i l i a r t o m a rke t i n g e d u c a t o r s a n d t h e i r s t u d e n t s a s a teaching device. For example, the Harvard Business School’s cases are widely used to allow students to be emotionally involved and le ar n action-related analysis of real, complex situations (Christensen and Hansen, 1987). However, a l t h o u g h c a s e s t u d i e s c a n a l s o b e u s e d a s a re s e a r c h m e t h o d o l o g y ( E a s t o n , 1994a; Parkhe, 1993; Tsoukas, 1989;