Introduction To Corporate Finance Key Concepts and Skills Ø   Know the basic types of financial management decisions and the role of the financial manager Ø   Know the financial implications of the different forms of business organization Ø   Know the goal ...

Overview Management and Managers Management: The art of getting things done through people in the organization Managers give organizations a sense of purpose and direction •      Managers create new ways of producing and distributing goods and services •      Managers change ...

Financing International Trade Payment Methods for International Trade •     The goods will not be shipped until the buyer has paid the seller. •     Time of payment : Before shipment •     Goods available to buyers : After payment •     Risk to ...

Multinational Capital Budgeting Subsidiary versus Parent Perspective •     Should the capital budgeting for a multi-national project be conducted from the viewpoint of  the subsidiary that will administer the project, or the parent that will provide most of the financing? •     ...

Insurance and Pension Fund Operations Insurance Companies n     Provide contractual risk management for: l      Risks of insurable asset losses (auto insurance) l      Risks of liability claims (product liability) l      Risk of large medical costs (health insurance) l      Risk of disability ...

Securities Operations Investment Banking Services n     Investment banking firms (IBFs) assist in raising capital for corporations and state and municipal governments n     IBF’s serve both financing entities and investors: l      Serve as an intermediary buying securities (promise to pay) from ...

Commercial Bank Operations Bank Participation in Financial Conglomerates n     Benefits of diversified services to individuals and firms l      Individuals can obtain all their financial services at a single financial conglomerate u   Deposits u   Loans u   Investing (brokerage) u   Insurance l      ...

Market Microstructure and Strategies Stock Market Transactions n     Market order to buy/sell at the best possible price n     Limit order is a market order with a specific price maximum or minimum n     Stop-loss order Margin Trading n     Federal Reserve sets ...

Residential Mortgage Characteristics l      Federal insurance guarantees repayment in the event of borrower default l      Limits on amounts, borrower requirements l      Borrower pays insurance premiums l      Conventional mortgages can also be privately insured Residential Mortgage Characteristics n     Fixed rate loans ...

Residential Mortgage Characteristics l      Federal insurance guarantees repayment in the event of borrower default l      Limits on amounts, borrower requirements l      Borrower pays insurance premiums l      Conventional mortgages can also be privately insured Residential Mortgage Characteristics n     Fixed rate loans ...