finance 6215 class 1 note
FIN 6215 CORPORATE FINANCIAL MANAGEMENT
Winter 2014
CLASS #1 LEARNING ACTIVITIES
For Class #1, please participate and complete the following learning activities.
(1) Study Guide to Class #1
Class #1 learning materials are available at Blackboard. Learning and study guidelines are provided below:
(1.1) -The main objective of Class #1 lecture is to learn the fundamental concepts of corporate financial management. Please review the PowerPoint presentation of Class #1.
(1.2) - Important concepts to cover: fundamentals of corporate finance, theory of the firm, the value of the firm, corporate financial system, objectives of corporate financial management, and most importantly, capital market imperfections and the M-M theorem.
(1.3) - PowerPoint slides to read and review:
Here are the step-by-step information on reviewing and learning the most important concepts/tools in Class #1; these are also important corporate finance concepts and tools that will be learnt and applied throughout the course. Step (1): Start with understanding the concepts of corporate financial management. Understand the five important questions in corporate finance
(see Slide #14): make sure you can answer these questions after reviewing
Class #1 materials.
Step (2): Corporate Financial System (IMPORTANT CONCEPT) Understand the corporate financial system, including the main players and their economic interactions in the corporate financial system. Understand the interrelationships between the firm and the capital markets - e.g. what firms provide to the financial markets; and what financial markets provide to the firms. Most importantly, understand the presence (and importance) of different types of market imperfections existed in the corporate financial system. Examples of capital market imperfections include: information asymmetry, agency cost, financial distress, tax, market inefficiency, transaction costs, among others.
1
Step (3): Theory of the
Winter 2014
CLASS #1 LEARNING ACTIVITIES
For Class #1, please participate and complete the following learning activities.
(1) Study Guide to Class #1
Class #1 learning materials are available at Blackboard. Learning and study guidelines are provided below:
(1.1) -The main objective of Class #1 lecture is to learn the fundamental concepts of corporate financial management. Please review the PowerPoint presentation of Class #1.
(1.2) - Important concepts to cover: fundamentals of corporate finance, theory of the firm, the value of the firm, corporate financial system, objectives of corporate financial management, and most importantly, capital market imperfections and the M-M theorem.
(1.3) - PowerPoint slides to read and review:
Here are the step-by-step information on reviewing and learning the most important concepts/tools in Class #1; these are also important corporate finance concepts and tools that will be learnt and applied throughout the course. Step (1): Start with understanding the concepts of corporate financial management. Understand the five important questions in corporate finance
(see Slide #14): make sure you can answer these questions after reviewing
Class #1 materials.
Step (2): Corporate Financial System (IMPORTANT CONCEPT) Understand the corporate financial system, including the main players and their economic interactions in the corporate financial system. Understand the interrelationships between the firm and the capital markets - e.g. what firms provide to the financial markets; and what financial markets provide to the firms. Most importantly, understand the presence (and importance) of different types of market imperfections existed in the corporate financial system. Examples of capital market imperfections include: information asymmetry, agency cost, financial distress, tax, market inefficiency, transaction costs, among others.
1
Step (3): Theory of the