财务管理-社团的财政讲义-5.ppt

Topic Flow Chart Goal of Finance = Maximize Value of Firm HOW? Get the most cash Steps 1. Methods to evaluate projects cash flow (NPV, IRR, etc) 2. Develop risk adjusted discount rates for use in NPV 3. Apply NPV, IRR, Decision Trees, PVI, etc to capital budgeting decisions 4. Changes in capital structure influence discount rates 5. Financial Distress can result form changes in capital structure Efficient Capital Markets Switches gears Past lectures decided how to spend money (invest) Today’s lecture deal with raising money (financing decisions) Fisher Separation Theorem Market Efficiency Theory sez Capital markets reflect all relevant information. You can not consistently earn excess profits. Type of Market Efficiency Weak Form Efficiency Semistrong Form Efficiency Strong Form Efficiency Efficient Market Theory Efficient Market Theory Efficient Market Theory Efficient Market Theory Random Walk Theory Random Walk Theory Efficient Market Theory Efficient Market Theory Market Efficiency Theory Conflicts in Theory Stock market crash of 1987 Daily fluctuations Culprits? Arbitrage Computers Institutions Efficient Market Theory Efficient Market Theory Lessons of Market Efficiency Markets have no memory Trust market prices There are no financial illusions Do it yourself diversification Seen one stock, seen them all Reading the entrails Corporate Financing Types of Financing 1 - Equity 2 - Debt 3 - Hybrids Corporate Financing READ TEXT FOR TERMINOLOGY Initial Offering Initial Public Offering (IPO) - First offering of stock to the general public. Underwriter - Firm that buys an issue of securities from a company and resells it to the public. Spread - Difference between public offer price and price paid by underwriter. Prospectus - Formal summary that provides information on an issue of securities. Underpricing - Issuing securities at an offering price set below the true value of the security. General Cash Offers Seasoned Offering - Sale of securities by