CF1Chapter 1 Intro to CFStu

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School
Banking Academy **We aren't endorsed by this school
Course
FINANCE 126
Subject
Finance
Date
Oct 16, 2023
Pages
56
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CORPORATE FINANCE I Dr. Nguyen Quynh Tho
Corporate Finance: The big picture The Investment Decision Invest in assets that earn a return greater than the minimum acceptable hurdle rate The Financing Decision Find the right kind of debt for your firm and the right mix of debt and equity to fund your operations The Dividend Decision If you cannot fin d investments that make your minimum acceptable rate, return the cash to owners of your business The hurdle rate should re fle ct the riskiness of the investment and the mix of debt and equity used to fund it. The return should re fle ct the magnitude and the timing of the cash flo ws as welll as all side effects. The optimal mix of debt and equity maximizes firm value The right kind of debt matches the tenor of your assets How much cash you can return depends upon current & potential investment opportunities How you choose to return cash to the owners will depend on whether they prefer dividends or buybacks Maximize the value of the business (firm)
Module Overview Chapter 1. Introduction to Corporate Finance Chapter 2. Financial Statements and Cash Flow Chapter 3. Discounted Cash Flow Valuation Chapter 4. Investment Appraisal Chapter 5. Interest Rates and Bond Valuation Chapter 6. Stock Valuation Chapter 7. Risk and Return
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