财务管理的概念：
Concerns the acquisition, financing, and management of asts with some overall goal in mind.
Investment decisions，Financing decisions，Ast management decisions。
The Goal of the Firm：
Maximization of Shareholder Wealth：Value creation occurs when we maximize the share price for current shareholders.
公司组织形式：
Sole Proprietorships：Advantages：Simplicity，Low tup cost，Quick t up，Single tax filing on individual form。Disadvantages：Unlimited liability，Hard to rai additional capital，Transfer of ownership difficulties，
Partnerships (general and limited) Advantages：Can be simple，Low tup cost, higher th
an sole proprietorship，Relatively quick tup，Limited liability for limited partners。Disadvantages：Unlimited liability for the general partner，Difficult to rai additional capital, but easier than sole proprietorship，Transfer of ownership difficulties
Corporations ：Advantages：Limited liability，Easy transfer of ownership，Unlimited life，Easier to rai large quantities of capital。Disadvantages：Double taxation，More difficult to establish ，More expensive to t up and maintain。
5c系统：Five Cs of Credit
1 Character – willingness to meet financial obligations
2 Capacity – ability to meet financial obligations out of operating cash flows
3 Capital – financial rerves（储备）
4 Collateral – asts pledged as curity
5 Conditions – general economic conditions related to customer’s business
PBP格致中学的优缺点：
Strengths:
1 Easy to u and understand
2Can be ud as a measure of liquidity
3Easier to forecast ST than LT flows
Weakness:
1Does not account for TVM
2Does not consider cash flows beyond the PBP
3Cutoff period is subjective
attraction
Irr的优缺点：
Strengths:
1Accounts for TVM西安教育培训机构
2Considers all cash flows
3 Less subjectivity中文英文转换器
有趣的发明Weakness:
广州樱花国际日语 1 Assumes all cash flows reinvested at the IRR
2Difficulties with project rankings and Multiple IRRs
Npv的优缺点：
Strengths:
jly 1Cash flows assumed to be reinvested at the hurdle rate.
2Accounts for TVM.
3Considers all cash flows.
Weakness:May not include managerial options embedded in the project
PI的优缺点：
Strengths:
1Same as NPV
2Allows comparison of different scale projects
Weakness:
1Same as NPV
2Provides only relative profitability
3Potential Ranking Problems
风险与报酬：
coconutRisk: The variability of returns from tho that are expected.
Systematic Risk is the variability of return on stocks or portfolios associated with changes in return on the market as a whole.
when i e you againRisk factors that affect a large number of asts,Also known as non-diversifiable risk or market risk,Includes such things as changes in GDP, inflation, interest rates, etc.
Unsystematic Risk is the variability of return on stocks or portfolios not explained by general market movements. It is avoidable through diversification.
Risk factors that affect a limited number of asts,Also known as unique risk and ast-specific risk,Includes such things as labor strikes, part shortages, etc.
Return:Income received on an investment plus any change in market price, usually expresd as a percent of the beginning market price of the investment.
1There is a reward for bearing risk 2The greater the potential reward, the greater the risk 3This is called the risk-return trade-off.
Systematic Risk Principle:
There is a reward for bearing risk;There is not a reward for bearing risk unnecessarily;The expected return on a risky ast depends only on that ast’s systematic risk since unsystematic risk can be diversified away.花的英文怎么写
Motives for Holding Cash
1Transactions Motive -- to meet payments arising in the ordinary cour of business
2 Speculative Motive-- to take advantage of temporary opportunities
3 Precautionary Motive-- to maintain a cushion or buffer to meet unexpected cash needs
Variables in Marketable Securities Selection
1. Interest Rate (or Yield) Risk：The variability in the market price of a curity caud by changes in interest rates.
2 Maturity：Refers to the remaining life of the curity.
3 Safety：Refers to the likelihood of getting back the same number of dollars you originally invested (principal).
4 Marketability (or Liquidity)：The ability to ll a significant volume of curities in a short period of time in the condary market without significant price concession.
