●Grading composition 1.Group work,30% 2.Midterm exam,30% 3.Final Examination,40% The course information 1-7
The course information •1-7 •Grading composition 1. Group work, 30% 2. Midterm exam, 30% 3. Final Examination, 40%
lecture 1: Introduction of Financia Economics Objective To Define Finance 5 financial principles vers and their fin ions THE COURSE OF FINANCE 2017 SPRING
lecture 1: Introduction of Financial Economics THE COURSE OF FINANCE 2017 SPRING •8 Objective To Define Finance 5 financial principles 2 Financial Players and their financial decisions
Chapter 1 Contents 1.1 Defining Finance 1.7 The Goal of 1.2 Why Study Finance Management 1.3 Financial Decisions 1.8 Market Discipline: of Households Takeovers 1.4 Financial Decisions of Firms 1.9 The Role of the Financial Specialist in 1.5 Forms of Business Organization a Corporation 1.6 Separation of Ownership and Management THE COURSE OF FINANCE 2017 SPRING
Chapter 1 Contents 1.1 Defining Finance 1.2 Why Study Finance 1.3 Financial Decisions of Households 1.4 Financial Decisions of Firms 1.5 Forms of Business Organization 1.6 Separation of Ownership and Management 1.7 The Goal of Management 1.8 Market Discipline: Takeovers 1.9 The Role of the Financial Specialist in a Corporation THE COURSE OF FINANCE 2017 SPRING •9
Introduction I'm saving for retirement.Should I use a bank CD,mutual fund,direct stock market investment? I want that new car.Should I use saved cash,lease,borrow? I'm thinking about starting a new business will it reward me adequately? The company is looking to expand into telecommunications. how should you advise the CFO? A Latin American country has asked for major project financing should my organization provide the funds? THE COURSE OF FINANCE 2017 SPRING 10
Introduction I’m saving for retirement. Should I use a bank CD, mutual fund, direct stock market investment? I want that new car. Should I use saved cash, lease, borrow? I’m thinking about starting a new business will it reward me adequately? The company is looking to expand into telecommunications. how should you advise the CFO? A Latin American country has asked for major project financing should my organization provide the funds? THE COURSE OF FINANCE 2017 SPRING •10
1.1 Defining Finance Finance is the study of how people allocate scarce resources over time costs and benefits are distributed over time but the actual timing and size of future cash flows are often known only probabilistically Examples:saving;mortgage loan;capital budgeting Understanding finance helps you evaluate these uncertain cash flows THE COURSE OF FINANCE 2017 SPRING 11
1.1 Defining Finance Finance is the study of how people allocate scarce resources over time costs and benefits are distributed over time but the actual timing and size of future cash flows are often known only probabilistically Examples: saving; mortgage loan; capital budgeting Understanding finance helps you evaluate these uncertain cash flows THE COURSE OF FINANCE 2017 SPRING •11