《金融学》课后习题答案.docxVIP

CHAPTER 1 WHAT IS FINANCE? Objectives Define finan ce. Explain why finance is worth studying. Introduce the main players in the world of finance—households and firms ——and the kinds of financial decisions they make. Outline Defining Finance Why Study Finan ce? Finan cial Decisi ons of Households Finan cial Decisi ons of Firms Forms of Busin ess Orga ni zati on Separati on of Own ership and Man ageme nt The Goal of Man ageme nt Market Discipli ne: Takeovers The Role of the Finance Specialist in a Corporation Summary Finance is the study of how to allocate scarce resources over time. The two features that disti nguish finance are that the costs and ben efits of finan cial decisi ons are spread out over time and are usually not known with certai nty in adva nee by either the decisi on-maker or an ybody else. A basic tenet of finance is that the ultimate function of the system is to satisfy people esnsumption preferences Economic organizations such as firms and governments exist in order to facilitate the achievement of that ultimate function. Many financial decisions can be made strictly on the basis of improving the tradeoffs available to people without knowledge of their con sumpti on prefere nces. There are at least five good reas ons to study finan ce: To man age your pers onal resources. To deal with the world of bus in ess. To pursue interesting and rewarding career opportunities. To make in formed public choices as a citize n. To expa nd your mind. The players in finance theory are households and bus in ess firms. Households occupy a special place in the theory because the ultimate function of the system is to satisfy the preferences of people, and the theory treats those preferences as given. Finance theory explains household behavior as an attempt to satisfy those prefere nces. The behavior of firms is viewed from the perspective of how it affects the welfare of households. Households face four basic types of finan cial decisi ons: Saving decisi ons How much o