厦门大学PCF笔记.docVIP

1a (1)Examinations In this course there is both: Mid Term Final Examinations Multiple Choice; Matching; Fill-in-the Blank; Short Answer Problems – simple multi-step (requires complex thinking multiple skills) Textbook Fundamentals of Corporate Finance; Stephen A Ross; Randolph W Westerfield; Jeffery Jaffe; McGraw-Hill Higher Education; 7th Edition Corporate Finance, Theory and Practice; Aswath Damodaran; John Wiley Sons; 2nd Edition Principles of Corporate Finance; Richard A Brealy Stewart C Myers; McGraw-Hill Higher Education; 7th Edition (2)Business foundations Economy – Exchange of goods services (including labor) between agreeing parties Allocation of scarce resources Efficiency in how these resources are utilized Equity or fairness in the use of these resources A market economy is an economy based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand. (3)Centered on different types of business organizations activities with the belief that more specialization and community will create greater wealth increased value than can be created solely by the individual. Greater specialization will increase productivity and therefore more wealth More community will increase value than which can be created solely by one individual. Surplus (wealth) is converted into capital which then is invested to produce more future economic benefits. Surplus = Capital Produce=comsume+surplus What are some types of Capital? Social Capital Individual Capital Intellectual Capital Financial Capital (3)Shareholder: a person, group, organization or system that holds equity in a business organization or company through ownership of shares of stock of that company. Investment Funds Pension Funds Government Individuals Employees Other Companies Stakeholder: a person, group, organization or system who is affected by the actions of a business organization or company; they may or may not be sh