FIN 300 Chapter 1: Introduction to Corporate Finance
|
|
- Gwendoline Wade
- 5 years ago
- Views:
Transcription
1 FIN 300 Chapter 1: Introduction to Corporate Finance 1.1 Corporate Finance and the Financial Manager What is Corporate Finance? Most large corporations centralize their finance function and use it to measure performance in other areas. The Financial Manager Shareholders are usually not directly involved in making business decisions. o Managers are hired to represent shareholder s interest. Financial Management Decisions Capital Budgeting The process of planning and managing a firm s investment in long-term assets. o Financial manager identifies investment opportunities that are worth more to the form than they will cost to acquire. (value of the cash flow generated by an asset exceeds the cost of the asset) o Evaluating the size, timing, and risk of future cash flows is the essence of CB. Capital Structure (Financial Structure) The mix of debt and equity maintained by a firm. o Great deal of flexibility in choosing financial structure. o Determining where to borrow money, how much, and in what mix manger s job. Working capital Management Planning and managing the firm s current assets and liabilities. o Working capital refers to firm s short-term assets (inventory, payment to suppliers). Managing is a day-to-day activity that ensures the firm has sufficient resources to continue its operations. 1.2 Forms of Business Organizations Sole Proprietorship Sole Proprietorship A business owned by a single individual. o Simplest type of business to start and the least regulated. o Keep all the profits, but have unlimited liability. Creditors can look beyond assets to personal assets for payment. o All business income is taxed as personal income Partnership Partnership A business formed by two or more co-owners. o General Partnership all partners share gains/losses, and all have unlimited liability. Division of gains/losses described in partnership agreement. o Limited Partnership general partners run business for limited partners. General has unlimited liability whereas limited has liability for only the amount that is contributed to the partnership. Corporation Corporation A business created as a distinct legal entity owned by one or more individuals or entities. o To start a business, the preparation of the articles of incorporation (or a charter) is required. Must include corporations name, intended life, purpose, number of shares issued. o Shareholders and management are separate groups in corporations.
2 o o Ownership can be readily transferred in form of shares of stock. Shareholders have limited liability. Double taxation is occurred as taxes of the corporation and also dividend tax. Income Trust An income trust is a non-corporate form of business organization. Business income trusts (also called income funds) hold the debt and equity of an underlying business and distribute the income generated to unit holders. o Since they are not corporations, they are not subject to corporate income tax. Investors view trusts as tax-efficient and have been showing more interest for organizations with this form of business. In 2006, the government accounted to tax trusts like corporations by o Many trusts are reverting to corporations in The Goal of Financial Management Possible Goals Surviving in business, beating competition, maximizing sales/market share, minimizing costs, etc., are possible financial goals. Profit maximization is the most cited goal. All goals usually fall into two categories; first is profitability and second is controlling risk. o Profitability involves sales, market share, and cost control. All are related in ways of earning or increasing profits. o Controlling Risk involves bankruptcy avoidance, stability, and safety. Contradictory goals because pursuit of profit usually involves some element of risk. It is not really possible to maximize both safety and profit. The Goal of Financial Management Goal: The goal of financial management is to maximize the current value per share of existing stock. Corporate finance is the study of the relationship between business decisions and the value of stock in the business. To make the market value of the stock a valid measure of financial decisions requires an efficient capital market. o In a efficient capital market, Security prices fully reflect available information. Market sets the stock price to give the firm an accurate report card on its decisions. A More General Goal The goal of maximizing stock does not take into account of privately owned business and no traded stock companies. To create a general goal, the value of stock in a corporation is equal to the value of the owner s equity. o General Goal: To maximize the market value of the owners equity. 1.4 The Agency Problem & Control of the Corporation Agency Relationships Agency Relationship the relationship between shareholders and management. o Someone (the principal) hires another (the agent) to represent his/her interests.
3 Agency Problem The possibility of conflicts of interest between the shareholders and management of a firm. Management Goals Agency Cost The cost of the conflict of interests between shareholders and management. o Can be indirect or direct. Indirect is a lost opportunity o Ex. Management might not take risky ventures because of the fear of losing jobs if investment goes bad, however, shareholders might want to take risk as stock price rises. Management might try to overemphasize organizational survival to protect job security. o May dislike outside interference, so independence and corporate self-sufficiency may be important goals. Do Managers Act in the Shareholders Interest? Managers act in the shareholders interest depends on two factors. o How close management goals align with shareholders goals Managers compensation o Can managers be replaced if they do not pursue shareholder goals Relates to control of the firm Management have significant economic incentive to increase share value for two reasons. o Managerial compensation is usually tied to financial performance. o Job prospects (promotions) are given to managers who pursue shareholders goals. Sarbanes-Oxley Act in 2002 was created to protect investors from corporate abuses. o Excessive pay and unauthorized consumption are examples of agency costs. Control of the firm ultimately rests on the shareholders. o Elect board of directors, who, in turn, hire and fire management. Management can also be replaced after a takeover. o Poor managed firms are more attractive because of greater turnaround potential. Avoiding a takeover is another incentive for management to pursue goals. Corporate Governance Rules for corporate organization and conduct. Stakeholder Anyone who potentially has a claim on a firm. o Shareholder, creditor, customer, suppliers, government, and any individual that potentially has a claim on the cash flow of the firm. Stakeholders can exert control over the firm by introducing alternate, socially oriented goals. This occurs because stakeholder satisfaction is consistent with shareholders wealth maximization. Corporate Social Responsibility & Ethical Investing Well-managed corporations maintain a good reputation with citizens with detailed policies on important social issues. o Investors concerned with corporate social responsibility (CSR) o Jantzi Research provides a social responsibility rating for corporations. 1.5 Financial Markets and the Corporation Cash Flows to and from the Firm Cash flows to firm from financial markets, firm invests the cash in current and fixed assets, assets generate cash, which pays government taxes, some is reinvested into firm, the rest goes back to the financial market.
4 Money versus Capital Markets Money Markets Financial markets where short-term debt securities are bought and sold. (IOU s) Capital Markets Financial markets where long-term debt and equity securities are bought and sold. Primary versus Secondary Markets Financial markets function as both primary and secondary markets for debt and equity securities. Primary Markets Refers to the original sale of securities by governments and corporations. Secondary Markets Where these securities are bought and sold after the original sale. Equity is sold solely by corporations, but debt securities are issued by both government and firms. Primary Markets Corporation is seller and the transactions raises money for the firm. Corporations engage in two types of transactions: public offerings and private placements. o Public Offering selling securities to the general public. Most securities offered are underwritten and are conducted by investment dealers. Underwritten means that an investment dealer or group of investment dealers (aka syndicate) typically purchase the securities from the firm and market them to the public at a higher price than they pay the firm. To avoid various regulatory requirements and the expense of public offerings, debt and equity securities are often sold privately to large financial institutions (life insurance/mutual funds). o Private Placement negotiated sale involving a specific buyer. Secondary Markets Involves one owner or creditor selling to another. It provides the means for transferring ownership of corporate securities. Two types of secondary markets: auction markets & dealer markets. o Dealer Markets In stocks and long-term debt are called over-the-counter (OTC) markets. Trading in Corporate Securities Large firms in Canada trade in organized auction and dealer markets (TSX). Smaller or emerging companies trade on the Venture Exchange. o Top 4 on the exchange: biotech, I.T., mining, and oil & gas.
5 Listing Auction markets differ from dealer markets in two ways: o An auction market has a physical location. o In a dealer market, most of the buying and selling is done by the dealer. Primary purpose of auction market is to match those who wish to sell with those who wish to buy. Dealer plays limited role To be listed on an exchange, certain minimum criteria concerning size and number of shareholders need to be met. o Varies from each exchange. Research suggests that listing on exchanges adds valuable liquidity to a company s shares. 1.6 Financial Institutions Institutions act as intermediaries between investors (funds suppliers) and firms raising funds. o Also to households and individuals Medium where people can save and borrow money. Justify existence by providing variety of services to allocate funds efficiently. Banks make their income from the spread between the interests paid on deposits and the higher rate earned on loans, this is called indirect finance. Direct finance funds do not pass through the bank s B/S in the form of deposit and loan. o Called securitization because a security is created (banker s acceptance). Banker s acceptance an IOU stamped by the bank guaranteeing borrower s credit. Bank receives a stamping fee as income. Trust companies engage in fiduciary activities managing assets for estates, RRSP, and so on. o Accept deposits and loans. Similar to credit unions. 1.7 Trends in Financial Markets & Financial Managements Experiencing rapid globalization. o Harder for investors to shelter their portfolios from financial shocks in other countries. o Interest rates, foreign exchange rates, and other macroeconomic variables are more volatile. Financial Engineering Creation of new securities or financial processes. o Managers or investment dealers design new securities or financial processes. o Reduces and controls risk and minimizes taxes. Derivative Securities Options, futures, and other securities, whose value derives from the price of another, underlying asset. o Useful in controlling risk Regulatory Dialectic The pressures financial institutions and regulatory bodies exert on each other. o Creation of larger institutions through combination of different types of financial institutions to take advantage of economies of scale and scope. (Ex. RBC Royal Trust & RBC Dominion Securities).
Chapter 1. What is Finance? Four Basic Areas. Corporate Finance. Investments. Financial Institutions. International
Chapter 1 What is Finance? Four Basic Areas Corporate Finance Investments Financial Institutions International What are the duties of the financial manager? What long-term investments should the firm make?
More information12. The mixture of debt and equity used by the firm to finance its operations is called: A. capital structure. B. financial depreciation. C.
1 Student: 1. When evaluating a project in which a firm might invest, the size but not the timing of the cash flows is important. True False 2. In capital budgeting, the financial manager tries to identify
More informationOverview of Managerial Finance
Overview of Managerial Finance Lakehead University September 2003 Overview of Managerial Finance Outline of the Lecture 1.1 Finance as an Area of Study 1.2 Basic Forms of Business Organization 1.4 Goal
More informationChapter 1 Introduction to Corporate Finance
Chapter 1 Introduction to Corporate Finance Konan Chan Financial Management, Fall 2018 Topics Covered Corporate finance and financial manager Forms of business organization Goal of financial management
More informationChapter 01 Introduction To Corporate Finance
Fundamentals of Corporate Finance 11th Edition Ross Westerfield Jordan Test Bank Complete download Test Bank for Fundamentals of Corporate Finance 11th Edition Ross Westerfield Jordan: Complete download
More informationChapter 1 An Overview of Financial Management and The Financial Environment
Chapter 1 An Overview of Financial Management and The Financial Environment ANSWERS TO END-OF-CHAPTER QUESTIONS 1-1 a. A proprietorship, or sole proprietorship, is a business owned by one individual. A
More informationEssentials of Corporate Finance. Ross, Westerfield, and Jordan 8 th edition
Solutions Manual for Essentials of Corporate Finance 8th Edition by Ross Full Download: http://downloadlink.org/product/solutions-manual-for-essentials-of-corporate-finance-8th-edition-by-ross/ Essentials
More informationNote that there is an overlap between the T/F and multiple-choice questions, as some of the T/F statements are used in multiple-choice questions.
Fundamentals of Financial Management 14th Edition Brigham Houston TEST BANK Complete download test bank for Fundamentals of Financial Management 14th Edition Brigham https://testbankarea.com/download/test-bank-fundamentals-financialmanagement-14th-edition-brigham-houston/
More informationCHAPTER 1 An Overview of Financial Management
CHAPTER 1 An Overview of Financial Management Career Opportunities Issues of the New Millennium Forms of Businesses Goals of the Corporation Agency Relationships 1-١ Principles of financial management
More informationTopics in Chapter CHAPTER 1. Why is corporate finance important to all managers? Business Organization from Startup to a Major Corporation
CHAPTER 1 An Overview of Financial Management and the Financial Environment Topics in Chapter Forms of business organization Objective of the firm: Maximize wealth Determinants of fundamental value Financial
More informationFundamentals of Corporate Finance 3e
Download full for Fundamentals of Corporate Finance 3rd Edition by Parrino https://getbooksolutions.com/download/test-bank-for-fundamentals-of-corporatefinance-3rd-edition-by-parrino IMA: FSA Chapter 1:
More informationDisclaimer: This resource package is for studying purposes only EDUCATION
Disclaimer: This resource package is for studying purposes only EDUCATION Chapter 1: The Corporation The Three Types of Firms -Sole Proprietorships -Owned and ran by one person -Owner has unlimited liability
More informationChapter 1 An Overview of Financial Management and The Financial Environment
Corporate Finance: A Focused Approach 5th Edition Ehrhardt Brigham Solutions Manual download: https://testbankarea.com/download/solutions-manual-corporate-finance-focusedapproach-5th-edition-ehrhardt-brigham/
More informationFINANCIAL MARKETS FINANCIAL INSTRUMENTS FINANCIAL INSTITUTIONS. Lecture 2 Monetary policy FINANCIAL MARKETS
FINANCIAL MARKETS FINANCIAL INSTRUMENTS FINANCIAL INSTITUTIONS Lecture 2 Monetary policy FINANCIAL MARKETS markets in which funds are transferred from people who have an excess of available funds to people
More informationChapter 2 Securities Markets. T 1. A major function of organized securities markets is to facilitate the transfers of securities among investors.
Chapter 2 Securities Markets TRUE/FALSE T 1. A major function of organized securities markets is to facilitate the transfers of securities among investors. T 2. A round lot is the general unit for trading
More informationChapter 2 Securities Markets. T 1. A major function of organized securities markets is to facilitate the transfers of securities among investors.
Chapter 2 Securities Markets TRUE/FALSE T 1. A major function of organized securities markets is to facilitate the transfers of securities among investors. T 2. A round lot is the general unit for trading
More informationLecture Saturday, 8 February 2014
Lecture Financial Decisions Investment decisions Dividend decisions Financing decisions Financial Management Objective is to maximise shareholder wealth through optimal choices in the three major financial
More informationChapter 2: Business (Corporate) Finance
Introduction to Corporate Finance, Fourth Edition Booth, Cleary, Rakita Chapter 2: Business (Corporate) Finance Multiple Choice Questions 1. Section: 2.1 Types of Business Organizations Learning Objective
More informationFAQ: Securities and Financial Markets
Question 1: What is agency relation within the context of a corporation, and what type of problems may arise as a result of such a relation? Answer 1: Agency relation is created whenever a company hires
More informationPresentation 1 Finance 101 BUAD 340
Presentation 1 Finance 101 BUAD 340 1. What is finance? 2. Three types of business organizations Overview 3. The goal of the financial manager 4. The eight basic principles of finance What is Finance?
More informationCORPORATE FINANCIAL MANAGEMENT. PART I INTRODUCTION (chapter 1-2)
CORPORATE FINANCIAL MANAGEMENT PART I INTRODUCTION (chapter 1-2) Course objectives to enable you to develop the analytical, interpretive, and judgmental abilities required of a financial manager to provide
More informationCONFLICTS OF INTEREST DISCLOSURE
CONFLICTS OF INTEREST DISCLOSURE General Description Actual, potential and perceived conflicts of interest exist in almost all human interactions. Our relationship with you is no different. Maison Placements
More informationChapter 1. Investments: Background and Issues. Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 1 Investments: Background and Issues McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved. 1.1 Real Versus Financial Assets 1-2 Real Versus Financial Assets Essential
More informationNATIONAL OPEN UNIVERSITY OF NIGERIA SCHOOL OF MANAGEMENT SCIENCE CORPORATE FINANCE COURSE CODE: ACC 405
NATIONAL OPEN UNIVERSITY OF NIGERIA SCHOOL OF MANAGEMENT SCIENCE CORPORATE FINANCE COURSE CODE: ACC 405 COURSE 1 Course Code: ACC 405 Course Title: CORPORATE FINANCE Course Developer/Writer: Ms. F. E.
More informationBMO Covered Call Canadian Banks ETF (ZWB)
ANNUAL FINANCIAL STATEMENTS BMO Covered Call Canadian Banks ETF (ZWB) Independent Auditor s Report To the Unitholders of: BMO Equal Weight Global Gold Index ETF BMO Mid Federal Bond Index ETF (formerly
More informationAdvanced Finance Dr. Parviz Aghili
Sharif University of Technology Graduate School of Management and Economics Advanced Finance Dr. Parviz Aghili 1390-91 2 nd term Introduction The financial system is the mechanism through which loanable
More informationShould we fear derivatives? By Rene M Stulz, Journal of Economic Perspectives, Summer 2004
Should we fear derivatives? By Rene M Stulz, Journal of Economic Perspectives, Summer 2004 Derivatives are instruments whose payoffs are derived from an underlying asset. Plain vanilla derivatives include
More informationAFM 371 Winter 2008 Chapter 20 - Issuing Equity Securities
AFM 371 Winter 2008 Chapter 20 - Issuing Equity Securities 1 / 18 Outline Background Public Equity Issues Rights Offerings Private Equity and Venture Capital 2 / 18 Background the procedures for selling
More informationEdexcel (B) Economics A-level
Edexcel (B) Economics A-level Theme 1: Markets, Consumers and Firms 1.4 Role of Credit in the Economy 1.4.3 Types and sources of credit and the impact of credit within the economy Notes Types of credit
More informationTypes of Business Organizations Sole Proprietorships Partnerships Corporations
Type of Business and The Role of Financial Management Organizing a Business Types of Business Organizations Sole Proprietorships Partnerships Corporations Organizing a Business Who owns the business? Are
More informationFinancial Institutions, Markets, and Money, 9 th Edition
Power Point Slides for: Financial Institutions, Markets, and Money, 9 th Edition Authors: Kidwell, Blackwell, Whidbee & Peterson Prepared by: Babu G. Baradwaj, Towson University And Lanny R. Martindale,
More informationBMO S&P/TSX Equal Weight Banks Index ETF (ZEB)
SEMI-ANNUAL FINANCIAL STATEMENTS BMO S&P/TSX Equal Weight Banks Index ETF (ZEB) Statement of Financial Position June 30 December 31 As at 2017 2016 Assets Current Assets Cash 780 37 Investments Non-derivative
More informationCHAPTER 2 SECURITIES MARKETS. Teaching Guides for Questions and Problems in the Text
CHAPTER 2 SECURITIES MARKETS Teaching Guides for Questions and Problems in the Text QUESTIONS 1. a. Listed securities are traded through a formal exchange such as the New York Stock Exchange. The securities
More informationChapter 1 Financial Management
Chapter 1 Financial Management LEARNING OBJECTIVES (Slides 1-1 to 1-3) 1. Describe the cycle of money, the participants in the cycle, and the common objective of borrowing and lending. 2. Distinguish the
More information0 questions at random and keep in order
Page 1 of 8 This chapter has 42 questions. Scroll down to see and select individual questions or narrow the list using the checkboxes below. 0 questions at random and keep in order s - (37) - (37) s -
More informationANSWERS TO END-OF-CHAPTER QUESTIONS
This is a sample of the instructor resources for Louis C. Gapenski, PhD, Fundamentals of Healthcare Finance, Second Edition. The complete instructor resources include Test Bank PowerPoint slides Sample
More informationToday s health care system, with its many types of health care organizations, is extremely complex.
CHAPTER 1 Introduction to Health Care Accounting and Financial Management Do I Really Need to Understand Accounting to Be an Effective Health Care Manager? Today s health care system, with its many types
More informationCHAPTER 15 THE FUNCTIONING OF FINANCIAL MARKETS. by Larry Harris, PhD, CFA
CHAPTER 15 THE FUNCTIONING OF FINANCIAL MARKETS by Larry Harris, PhD, CFA LEARNING OUTCOMES After completing this chapter, you should be able to do the following: a Distinguish between primary and secondary
More informationTrefzger, FIL 240 & FIL 404 Assignment: Debt and Equity Financing and Form of Business Organization
Trefzger, FIL 240 & FIL 404 Assignment: Debt and Equity Financing and Form of Business Organization Please read the following story that provides insights into debt (lenders) and equity (owners) financing.
More information1. Allocates scarce capital among competing uses 2. Spreads/shares risk 3. Facilitates inter-temporal trade
Chapter 2: The Financial System What it is: What it does: A network of financial intermediaries (banks, S&Ls, credit unions, etc.), facilitators (credit rating agencies, appraisers, etc.), and markets
More informationThe Financial System. Sherif Khalifa. Sherif Khalifa () The Financial System 1 / 55
The Financial System Sherif Khalifa Sherif Khalifa () The Financial System 1 / 55 The financial system consists of those institutions in the economy that matches saving with investment. The financial system
More informationFull file at CHAPTER 2 THE DOMESTIC AND INTERNATIONAL FINANCIAL MARKETPLACE
CHAPTER 2 THE DOMESTIC AND INTERNATIONAL FINANCIAL MARKETPLACE ANSWERS TO QUESTIONS: 1. The saving-investment cycle consists of net savers (surplus spending units) transferring funds to net investors (deficit
More informationCHAPTER 2 THE DOMESTIC AND INTERNATIONAL FINANCIAL MARKETPLACE
CHAPTER 2 THE DOMESTIC AND INTERNATIONAL FINANCIAL MARKETPLACE ANSWERS TO QUESTIONS: 1. a. A multinational corporation is a firm that has investments in manufacturing and/or distribution facilities in
More informationState Content Standards for New Jersey
Episode 101 What Is a Biz Kid? Episode 102 What Is Money? Episode 103 How Do You Get Money? Episode 104 What Can You Do with Money? Episode 105 Money Moves Episode 106 Taking Charge of Your Financial Future
More informationChapter 16: Financial Distress, Managerial Incentives, and Information
Chapter 16: Financial Distress, Managerial Incentives, and Information-1 Chapter 16: Financial Distress, Managerial Incentives, and Information I. Basic Ideas 1. As debt increases, chance of bankruptcy
More informationEnd of Chapter Solutions Corporate Finance: Core Principles and Applications 4 th edition Ross, Westerfield, Jaffe, and Jordan
End of Chapter Solutions Corporate Finance: Core Principles and Applications 4 th edition Ross, Westerfield, Jaffe, and Jordan 06-08-2013 Prepared by Brad Jordan University of Kentucky Joe Smolira Belmont
More informationThe Financial System. Sherif Khalifa. Sherif Khalifa () The Financial System 1 / 52
The Financial System Sherif Khalifa Sherif Khalifa () The Financial System 1 / 52 Financial System Definition The financial system consists of those institutions in the economy that matches saving with
More informationRISK MANAGEMENT AND VALUE CREATION
RISK MANAGEMENT AND VALUE CREATION Risk Management and Value Creation On perfect capital market, risk management is irrelevant (M&M). No taxes No bankruptcy costs No information asymmetries No agency problems
More informationFinancial instruments -provide holders with entitlement to future cash flow
Week 1&Week 2 Financial System - System that enables lenders and borrowers to exchange funds - Acts as back-up system to economic production of goods and services - Hence a direct link between economic
More informationFinancial Management Bachelors of Business (Specialized in HRM) Study Notes Chapter 1: Financial Management Introduction & Goals of the Firm
Financial Management Bachelors of Business (Specialized in HRM) Study Notes Chapter 1: Financial Management Introduction & 1 INTRODUCTION This topic introduces the area of finance and discusses the role
More informationCHAPTER 2 THE DOMESTIC AND INTERNATIONAL FINANCIAL MARKETPLACE
CHAPTER 2 THE DOMESTIC AND INTERNATIONAL FINANCIAL MARKETPLACE ANSWERS TO QUESTIONS: 1. The saving-investment cycle consists of net savers (surplus spending units) transferring funds to net investors (deficit
More informationF R E Q U E N T L Y A S K E D Q U E S T I O N S A B O U T C L O S E D - E N D F U N D S
F R E Q U E N T L Y A S K E D Q U E S T I O N S A B O U T C L O S E D - E N D F U N D S Most investors are familiar with mutual funds, or open-end registered investment companies. Closed-end funds, however,
More informationChapter 2: Business (Corporate) Finance
Chapter 2: Business (Corporate) Finance Multiple Choice Questions Section 2.1 Types of Business Organizations 1 Which of the following is not a reason for incorporating a business? A. Limited liability
More informationBMO Short Federal Bond Index ETF (ZFS/ZFS.L)
ANNUAL FINANCIAL STATEMENTS BMO Short Federal Bond Index ETF (ZFS/ZFS.L) Independent Auditor s Report To the Unitholders of: BMO Equal Weight Global Gold Index ETF BMO Mid Federal Bond Index ETF (formerly
More informationChapter 1 Financial Management Introduction & Goals of the Firm
Chapter 1 Financial Management Introduction & Goals of the Firm Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) Introduction This topic introduces the area of
More informationWhat is a market? Brings buyers and sellers together to aid in the transfer of goods and services.
What is a market? Brings buyers and sellers together to aid in the transfer of goods and services. Does not require a physical location. The market does not necessarily own the goods or services involved.
More informationDIVERSIFICATION AND THE PRIVATELY HELD BUSINESS
DIVERSIFICATION AND THE PRIVATELY HELD BUSINESS STRATEGIC CONSIDERATIONS FOR A HIGHLY CONCENTRATED ASSET CLASS For many of the world s most successful entrepreneurs, the creation of significant wealth
More information(i) A company with a cash flow problem that is having difficulty collecting its debts.
Answer on question #41311 - Management - Other For each of the following situations, explain what the most suitable source of finance is: (i) A company with a cash flow problem that is having difficulty
More informationOliver Continuing Education Series. Understanding Mutual Funds. Continuing Education Module
Oliver Continuing Education Series Understanding Mutual Funds Continuing Education Module Copyright 2004 Oliver Publishing Inc. All rights reserved. No part of this publication may be reproduced, stored
More informationBMO Equal Weight US Banks Index ETF (ZBK)
ANNUAL FINANCIAL STATEMENTS BMO Equal Weight US Banks Index ETF (ZBK) Independent Auditor s Report To the Unitholders of: BMO Equal Weight Global Gold Index ETF BMO Mid Federal Bond Index ETF (formerly
More informationFinancial Management Principles and Applications 13th Edition Titman TEST BANK
Financial Management Principles and Applications 13th Edition Titman TEST BANK Full download at: https://testbankreal.com/download/financial-management-principles-andapplications-13th-edition-titman-test-bank/
More informationTo Invest in an RRSP or Not
October 7, 2010 To Invest in an RRSP or Not The RRSP Conundrum The registered retirement savings plan (RRSP) has long been recognized as an essential retirement planning vehicle. However, the value of
More informationLecture 2 (a) The Firm & the Financial Manager
Lecture 2 (a) The Firm & the Financial Manager Finance is about money and markets, but it is also about people. The success of a corporation depends on how well it harnesses everyone to work to a common
More informationSuperficial Loss Rules and Planning Strategies
November 2, 2009 An overview of the rules and strategies surrounding superficial losses If you are faced with a capital loss and would like to benefit from the tax advantage associated with the loss, ensure
More informationIntroduction. Master Programmes INTERNATIONAL FINANCE. Szabolcs Sebestyén
Introduction Szabolcs Sebestyén szabolcs.sebestyen@iscte.pt Master Programmes INTERNATIONAL FINANCE Sebestyén (ISCTE-IUL) Introduction International Finance 1 / 43 Outline 1 Why Study Money, Banking, and
More informationChapter 2 The Domestic and International Financial Marketplace
Download Solution Manual for Contemporary Financial Management 13th Edition by Moyer Link full: https://testbankservice.com/download/solutionmanual-for-contemporary-financial-management-13th-editionby-moyer/
More informationCh. 2 AN OVERVIEW OF THE FINANCIAL SYSTEM
Ch. 2 AN OVERVIEW OF THE FINANCIAL SYSTEM To "finance" something means to pay for it. Since money (or credit) is the means of payment, "financial" basically means "pertaining to money or credit." Financial
More informationBFF1001 Week 1 Topic 1: What is finance
BFF1001 Week 1 Topic 1: What is finance Definitions Deficit A deficit unit saves less money than it invests A deficit unit needs funds If saving is less than investment, a deficit occurs Surplus A surplus
More informationApple Computer began as a two-man partnership in a. Introduction Financial Management PART ONE OVERVIEW OF FINANCIAL MANAGEMENT
OVERVIEW OF FINANCIAL MANAGEMENT Apple Computer began as a two-man partnership in a garage. It grew rapidly and, by 1985, became a large publicly traded corporation with 60 million shares of stock and
More informationInvesting 101: Introduction to investment types
Investing 101: Introduction to investment types de Groot Wealth Management of RBC Dominion Securities Elizabeth de Groot, CFP, FCSI, CIWM, CPCA Vice-President, Investment & Wealth Advisor elizabeth.degroot@rbc.com
More informationPAGE ONE Economics. TEACHER EDITION Middle School Version. Financing Businesses and Public Projects with Stocks and Bonds
PAGE ONE Economics TEACHER EDITION Middle School Version Page One Economics is an informative accessible essay on timely economic issues. The Teacher Edition provides the essay; student questions with
More informationEconomics of Money, Banking, and Financial Markets, 11e (Mishkin) Chapter 2 An Overview of the Financial System. 2.1 Function of Financial Markets
Economics of Money, Banking, and Financial Markets, 11e (Mishkin) Chapter 2 An Overview of the Financial System 2.1 Function of Financial Markets 1) Every financial market has the following characteristic.
More informationCEE National Standards for Financial Literacy
Episode 101 What Is a Biz Kid? Episode 102 What Is Money? Episode 103 How Do You Get Money? Episode 104 What Can You Do with Money? Episode 105 Money Moves Episode 106 Taking Charge of Your Financial Future
More informationSwap Markets CHAPTER OBJECTIVES. The specific objectives of this chapter are to: describe the types of interest rate swaps that are available,
15 Swap Markets CHAPTER OBJECTIVES The specific objectives of this chapter are to: describe the types of interest rate swaps that are available, explain the risks of interest rate swaps, identify other
More informationEmployee Ownership: A Business Retention Strategy. April 8, Paul Karch
Employee Ownership: A Business Retention Strategy Paul Karch 608-234-6055 pkarch@whlaw.com What is an ESOP? Employee Stock Ownership Plan Retirement plan protected by ERISA Similar to profit sharing or
More informationSimplified Prospectus March 4, 2013 Series A, Advisor Series, Series D, Series F and Series O units
R B C F U N D S Simplified Prospectus March 4, 2013 Series A, Advisor Series, Series D, Series F and Series O units RBC Emerging Markets Dividend Fund RBC Emerging Markets Small-Cap Equity Fund No securities
More informationI. The Primary Market
University of California, Merced ECO 163-Economics of Investments Chapter 3 Lecture otes Professor Jason Lee I. The Primary Market A. Introduction Definition: The primary market is the market where new
More informationThe Investment Environment. Chapter 1
The Investment Environment Chapter 1 Real & Financial Assets Real assets = assets used to produce goods and services (productive capacity) physical assets (land, buildings, machinery etc.) human assets
More informationGuide to Financial Management Course Number: 6431
Guide to Financial Management Course Number: 6431 Test Questions: 1. Objectives of managerial finance do not include: A. Employee profits. B. Stockholders wealth maximization. C. Profit maximization. D.
More informationUNIVERSITY OF KWAZULU-NATAL SCHOOL OF ECONOMICS AND FINANCE EXAMINATION: JUNE 2007 SUBJECT, COURSE AND CODE: FINANCE 201 (FINA201)
UNIVERSITY OF KWAZULU-NATAL SCHOOL OF ECONOMICS AND FINANCE EXAMINATION: JUNE 2007 SUBJECT, COURSE AND CODE: FINANCE 201 (FINA201) EXAMINERS (INTERNAL): MRS S DONNELLY EXAMINER (EXTERNAL): MR G OLDHAM
More informationInternational Finance
International Finance FINA 5331 Lecture 2: U.S. Financial System William J. Crowder Ph.D. Financial Markets Financial markets are markets in which funds are transferred from people and Firms who have an
More informationCore competence framework
Short version EIA European Investment Assistant Core competence framework Version 2016 1 EUROPEAN INVESTMENT ASSISTANT (EIA) EFPA Level 1 5 days classroom equivalent EQF Level 3 MODULE TOPIC DURATION (in
More informationThe Navigator. RBC Wealth Management Services
RBC Wealth Management Services The Navigator Selling the Farm and the Capital Gain Exemption The 2011 Census of Agriculture indicated that nearly half of all farmers in Canada are 55 years of age or older.
More informationNavigator. Alter ego and joint partner trusts. The. An estate planning strategy to protect your wealth
The Navigator RBC Wealth Management Services Weatherill Wealth Management Group Alter ego and joint partner trusts An estate planning strategy to protect your wealth Brad Weatherill, CIM Vice President
More informationBOGAZICI UNIVERSITY - DEPARTMENT OF ECONOMICS FALL 2016 EC 344: MONEY, BANKING AND FINANCIAL INSTITUTIONS - PROBLEM SET 2 -
BOGAZICI UNIVERSITY - DEPARTMENT OF ECONOMICS FALL 2016 EC 344: MONEY, BANKING AND FINANCIAL INSTITUTIONS - PROBLEM SET 2 - DUE BY OCTOBER 10, 2016, 5 PM 1) Every financial market has the following characteristic.
More informationBasic Corporate Finance
2-208-97 Basic Corporate Finance Professor: Joshua Slive Office: 4.253 Office hours: Drop by or by appointment E-mail: joshua.slive@hec.ca Web site: http://www.hec.ca/sites/cours/2-208-97 Today: 1. Introduction
More informationInvestments: An Introduction
Investments: An Introduction 10e Chapter 2: Securities Markets Herbert B. Mayo Market Makers - Security Dealers - Specialists Offer to buy and sell for their own accounts Spread - difference between the
More informationBanks, Firms and Trade Finance Infrastructure in Albania
Banks, Firms and Trade Finance Infrastructure in Albania PhD Cand. Dorina Çumani dorinacumani@gmail.com European University of Tirana, Albania Abstract Firms engaged in international trade face to some
More informationCHAPTER 14: ANSWERS TO CONCEPTS IN REVIEW
CHAPTER 14: ANSWERS TO CONCEPTS IN REVIEW 14.1 Puts and calls are negotiable options issued in bearer form that allow the holder to sell (put) or buy (call) a stipulated amount of a specific security/financial
More informationQUESTIONS OF OWNERSHIP
QUESTIONS OF OWNERSHIP Ownership will affect your business legally, financially, and personally throughout life of business Things to consider: Do you want to go into business by yourself? Do you want
More informationFinancial Management, 12e (Titman/Keown/Martin) Chapter 2 Firms and the Financial Market. 2.1 The Basic Structure of the U.S.
Financial Management, 12e (Titman/Keown/Martin) Chapter 2 Firms and the Financial Market 2.1 The Basic Structure of the U.S. Financial Markets 1) The principal savers in the financial markets are A) businesses.
More informationNavigator. Incorporating your farm. The. Is it right for you? Please contact us for more information about the topics discussed in this article.
The Navigator INVESTMENT, TAX AND LIFESTYLE PERSPECTIVES FROM RBC WEALTH MANAGEMENT SERVICES Incorporating your farm Is it right for you? On July 18, 2017 the federal government released a consultation
More informationChapter 3. Financial Instruments, Financial Markets, and Financial Institutions
Financial Instruments, Financial Markets, and Financial Institutions Problems and Solutions 1. As the end of the month approaches, you realize that you probably will not be able to pay the next month s
More informationThere are several advantages to incorporating your farm. The following is a non-exhaustive list of these advantages:
RBC Wealth Management Services The Navigator Incorporating Your Farm Is it right for you? If you have considered incorporating your farm, investigate the advantages and the costs of incorporating. This
More informationBMO Mutual Funds 2015
BMO Mutual Funds 2015 Semi-Annual Financial Statements BMO SelectTrust Fixed Income Portfolio NOTICE OF NO AUDITOR REVIEW OF THE SEMI-ANNUAL FINANCIAL STATEMENTS BMO Investments Inc., the Manager of the
More informationPractice Test 1: Multiple Choice
Practice Test 1: Multiple Choice 1. If aggregate planned expenditure exceeds real GDP A. actual inventories decrease below their target. B. firms are not maximizing their profits. C. planned consumption
More informationInvestment Analysis (FIN 383) Fall Homework 2
Investment Analysis (FIN 383) Fall 2009 Homework 2 Instructions: please read carefully You should show your work how to get the answer for each calculation question to get full credit The due date is Thu,
More informationThe business of making money. Rate of return of a simple asset /1. The role of financial assets /2
1 The business of making money In a modern monetary economy, goods are typically not exchanged for goods but for fiat money. Therefore, even though people are ultimately interested in getting goods, the
More informationA guide to investing in hybrid securities
A guide to investing in hybrid securities Before you make an investment decision, it is important to review your financial situation, investment objectives, risk tolerance, time horizon, diversification
More informationCore competence framework
Short version EIP European Investment Practitioner Core competence framework Version 2016 1 EUROPEAN INVESTMENT PRACTITIONER (EIP) EFPA Level 2 10 days classroom equivalent EQF Level 4 MODULE TOPIC DURATION
More information