金融三大领域关联性及投资决策分析.pdfVIP

Chapter1

Introduction

Solutionstoquestions

1.Financeinvolvesthreemainareas—corporatefinance,financialinstitutionsandmarkets,and

investments—thatarecloselyrelatedandcomplementary.Forexample,incorporatefinance

thecentralissuesarehowtoacquireandemployorinvestfunds.Toacquirefundsa

financialmanagermustdealwithfinancialinstitutions,sosomeknowledgeofthe

operationsoffinancialinstitutionsandmarketsisessential.Similarly,corporatefinance

involvesinvestmentsbecausedecisionshavetobemadeaboutwhichassetsshouldbe

acquiredbyabusiness.Giventhecloserelationshipweenthesethreeareasoffinance,

itisimpossibletodiscussoneofthemwithoutsomediscussionoftheothers.

2.Ininvestmentdecisions,managersconsidertheamountinvestedintheassetsofthebusiness

andthecompositionofthatinvestment.Managersofthebusinessarethereforeinvolvedin

thetaskofchoosing,usuallyfromalonglistofavailableprojects,thosethataretobe

undertaken.Inadditiontodecisionsabouttheamountandcompositionofinvestments,

managershavetodecidehowtofinancethem.Thesearefinancingdecisions.Thiswill

involvegeneratingfundsinternallyorraisingfundsfromsourcesexternaltothebusiness.

Financingdecisionsalsoinvolvedividenddecisionsbecausepaymentofdividendsreduces

theinternallygeneratedfundsthatareavailable.

3.(a)Asoleproprietorshipisabusinessownedbyone.Manysmallservicebusinesses,

retailstoresandprofessionalpracticesar