Fin 4300 Spring 2011

In: Business and Management

Submitted By ttheky
Words 35989
Pages 144
Finance 4300: Corporate Finance

Dr. Pan College of Business and Economics California State University, East Bay

Spring 2011



FIN 4300 Topic 1: Introduction to Corporate Financing

1.1 What Is Corporate Finance 1.2 Types of securities issued by corporations (1) Common Stock (2) Preferred Stock (3) Corporate Debt 1.3 Venture Capital, IPOs, and Seasoned Offerings



What Is Corporate Finance?

Corporate finance can be broken down into: (1) the investment (or capital budgeting) decision; and (2) the financing decision. The firm has to decide (1) how much to invest and which real assets to invest in and (2) how to raise the necessary cash.
Balance Sheet
The balance sheet presents the accounting value of assets and the source of money used to purchase those assets at a particular time. Current Assets Cash & Marketable Securities Receivables Inventories Fixed Assets Plant & Equipments Less accumulated depreciation

Current Liabilities Long‐Term Debt Shareholders' equity

Total assets = Total liabilities & Equity

Income Statement
The income statement is a financial statement listing the revenues, expenses, and net income of the firm in a period of time.
Net sales (Cost of goods sold) (Selling, general & administrative expenses) (Depreciation) Earnings before interest & taxes (Interest Expenses) Taxable Income (Taxes) Net Income (Dividends) Retained Earnings



Corporate Financing

In the following two chapters (14 and 15), we assume that the firm has already decided on which investment projects to accept, and we focus on the best way to finance these projects. Managers want to raise money at the lowest possible cost, but their ability to find cheap financing is limited by the intense competition between investors. As a result of this competition,…...

Similar Documents

Arab Springs

...The “Arab spring” also known as the Arab revolution is referred to a revolutionary wave of demonstrations, protest, and violence occurring in the Arab world in the Middle Eastern and North African regions beginning in December of 2010. The Arab spring has had a large impact on the worlds foreign affairs for the past 3 years. Many Arab countries in the last few years have had their own revolutions and protest almost reaching levels to be considered civil wars. The largest and most violent demonstrations have been and are currently happening in a country on the western border of Iraq and south of Turkey known as Syria. Syria has been in an inner conflict since the country won its independence from France in 1946. Though recently because of the large amount of different social ethical and religious groups all looking for power and authority in the same region, the country has been in a violent turmoil. To get a better understanding on why and how Syria has fallen into this state of power struggled violence you should first look at the other countries involved in todays Arab spring and how this whole mess started in the Arab world. On December 17, 2010, in a small North African country called Tunisia, a twenty six year old street vendor by the name of Mohamed Bouazizi started a revolution that would change the world forever. Earlier that day Mohamed had been selling goods from his wheelbarrow in his rural home town when local authorities seized his wheelbarrow and all of his......

Words: 1933 - Pages: 8

The Rab Spring

...Surname: Professor: Year: Subject: “THE ARAB SPRING” The term “Arab spring” is a connotation used by both Khalidi and Rozenman in their articles in reference to the Arabs’ protests for democracy overtime. The articles are a response to the mass action taken by various Arabs worldwide after the throw of despondent rulers such as Egypt’s Hosni Mubarak, Yemen’s Ali Abdullah Saleh and Libya’s Muammar Ghadafi. The two articles attempt to delve deep into the consequences of such historical actions, drawing precedence from nations such as Turkey and Lebanon. Khalidi and Rozenman are both keen on the influence of a new democracy in the Arab nations and the impact that such “fresh rule” would have on the society; especially the Arab and Western worlds. The Arab world as a better place Khalidi (2011) is keen on stating that the Arab world has become a better place. This, he says, is due to the ability of Arab countries to shake themselves loose from the shackles of dictatorship that have bound them over the years. Evidence of this could be seen through the positive press coverage that Arab countries are getting from the west. Rozenman is, however, of a different opinion. He opines that the end of autocracy in the Arab world is something worthwhile. Despite the downfall of the despots in Egypt, Syria and Lybia; the democracy model that the said countries are eager to develop would be retrogressive. He further writes that Arab democracy drawn from Islamist ideas ,which are......

Words: 990 - Pages: 4

Arab Spring

...Executive Summary The aim of the research was to answer the main research question: ‘What caused the Arab Spring’ In order to tackle this question; desk research, case studies and an interview with Mr Farrid Benkaddour have been conducted. Farrid Benkaddour is a Moroccan sociologist, he started his career in Morocco after obtaining his baccalaureate in 1984. Since then he has been a teacher in Morocco, afterwards he went to the Netherlands to teach Dutch people about Moroccan culture. He currently works for Arabika, a company that specializes in legal assistance, translations, language trainings and intercultural communications. The desk research revealed the opinions of the Arab spring’s countries inhabitants. Inflation, unemployment and poor housing conditions prevailed as a direct consequence of insufficient dictatorial regimes. Freshly graduated youth was left jobless with no sign of improvement in the near future. People became more and more aware of the lack of political influence they had and started idealizing the western political democratic models. The interview and case studies showed there have been negative thoughts about the dictatorial regimes ever since their instalment. Protests have been seen throughout the history of the Arab world. The difference, however, between those protests and the Arab Spring is the modern age. Where earlier protests failed due to lack of support, the modern age tools such as (social-)media carried the Arab spring’s unfolding...

Words: 4787 - Pages: 20

Spring Festival

...Spring Festival The first day of the first month by the Chinese Lunar Calendar is Spring Festival, also known as Chinese New Year; it is the most important traditional holiday in China. Spring Festival dates back to four thousand years ago, originated in the Shang Dynasty. The year of 2011 was the Year of the Rabbit; due to my parents went to Bengal for missionary work, my uncle who lives in the countryside invited me to his house for Spring Festival this year. I didn’t like the idea at first because the countryside is known for its unsatisfying sanitary condition and the lack of air-conditioning. Contrary to my expectations, this Spring Festival was the most fun and memorable holiday I’ve ever experienced. During the fifteen days of Spring Festival I experienced many old traditions and customs; the activities were meaningful and had interesting stories behind them. January the 23rd was the coldest day before Spring Festival; however, my uncle, aunt, my cousin and I went to the market and bought special purchases for the Spring Festival despite of the awful weather. Among the goods we bought, the antithetical couplets are worth a mention; antithetical couplets are vertical written couplets of blessing words written with writing brush on red papers and placed along both sides of a doorway. Red is considered lucky color in China, and most stores were decorated in red during the holiday season. We saw many huge lanterns with the character “福” (means happiness and good......

Words: 1386 - Pages: 6

The Last Spring

...The last spring I remember once I had someone very dear to me, someone that left deep traces in my life, someone that would live in my heart forever, someone that I will never forget. In order to preserve the memory of this angel, a divine human creature, I devote this story to my friend because her innocence and her fragility has been inspiring me for years. I hope that many people will understand the hidden message once they've read the story. It was a wonderful spring dawning. The air was poisoned with nothing else but the strong smell of the spring flowers and the joy of the birds' songs. We were holding our hands and happily as happy can two little girls be, we were bouncing and jumping in the park. Spring could be seen in our eyes, sunshine could be recognized in our smile. It seemed to us like we were flying in the air as two colourful butterflies from a flower to a flower, each of them more and more beautiful, each of them more and more attracting, as if they were the last days of our lives and each of them was more and more challenging. Smiling faces everywhere, people could envy our happy childhood reflected in the deepness of our sight. We were so excited in those spring rainbows above our heads without knowing that this would be our last spring together, remembered afterwards as the coldest one and the darkest one in my life. It's funny how Marta and I met at a beach resort. We could never imagine that we were going to be inseparable friends.......

Words: 1290 - Pages: 6

Arab Spring

...QUESTION 1 The research theme of the article is the Arab Spring and democracy. The Arab Spring as a revolutionary act got people from western countries excited as the Arabians were fighting for their liberation. As the Arab people were fighting to get democracy, it was thought that if the people who were fighting were to get that democracy, there would peace among states (Coetzee 2013: 310). The Arab Spring served as a confirmation that the world would eventually get to a point where it was liberal democratic and that if the Arab world was to be liberated, there would be tranquillity. Even though the aims of the Arab Spring were intended for good, it did not achieve positive results. It actually created more problems and threatened the security and stability of the Arab countries. The theoretical perspective that the author used is a structural realist one. He drew on the theory of Kenneth Waltz and argued that the future of international politics is going to be filled with complications and difficulties. The theory of structural realism argues that the highest goal of states is to attain power (Jackson & Sorensen 2013: 81). Even though this is so, the states are guided by the principle of anarchy and are restricted by the structure of the system since it is the one that determines how states behave. The power of states such as Russia and China is increasing which threatens to move the balance of power from unipolar to multipolar which will be dangerous because the rise...

Words: 2468 - Pages: 10


...Hopkins’s poem focuses on the beauty of the spring season, using examples of how life blossoms during the spring. Everything comes to life, the new array of colors paint a colorful world. All of God’s little creatures come to life. Birds fill the air soaring through the bluest sky, they build nest for little newcomers. The spring showers clean the air and everything smells clean and fresh to the poet. This world emerged from a dreary place called winter. Hopkins expresses how spring brings God’s paradise alive once again; and he is elated. Hopkins shows God his appreciation through his expression of how the spring must be similar, to the Garden of Eden. The world feels clean and bright to the Hopkins. Almost seems like a prayer request asking God to make it last forever, unlike the Garden of Eden which brought sorrow and despair. Analysis: Hopkins focuses on bright colors, like the "descending blue, that blue is all in a rush" and also uses similar "like lightning" to reinforce the power of spring. The image he gives the reader catches the reader off guard, a small distraction small distraction. Hopkins states “weeds and wheels” and “long lovely and lush,” this little distraction changes the readers’ visual. However, almost immediately he regains the reader’s attention. With his illustration it only gives the reader the meaning as his imaginary wheel makes you focus on his expression of the spring season here, Hopkins hits a note, he questions nature “”all......

Words: 384 - Pages: 2

Practice Midterm Solutions Fin 410 Spring 2007 Midterm 1-Solutions

...Name: ________KEY____________________ Midterm I Finance 410 International Financial Management Spring 2007 Instructions: 1. There are 10 multiple-choice questions, each worth 3 points and 6 problems worth a total of 70 points. 2. Write your answers (IN CAPITAL LETTERS) for the multiple choice questions on the answer sheet provided at the back of the exam. 3. You need a calculator and some writing utensil; all the formulas are provided in the back of the exam in a separate formula sheet. 4. Do not forget to write your names at the top of this page. Exams without names will not be graded. 5. GOOD LUCK!!!!!!!! MULTIPLE CHOICE QUESTIONS: 1. Which of the following investment strategies will allow an investor to make a profit if they anticipate that the value of the Euro, a currency that they do not currently own, is going to fall over the next 90 days, and they are correct in their prediction? A. Sell Euros short B. Buy Euros short C. Sell dollars short D. Buy Euros long 2. Foreign exchange ___________________ earn a profit by the bid-ask spread on the currencies they buy and sell. Foreign exchange _________________, on the other hand, earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase. A. central banks; treasuries B. dealers; brokers C. brokers; dealers D. speculators; arbitragers ...

Words: 1566 - Pages: 7

Spring Scheduel

...Spring 2015 School of Business - Graduate Course Schedule Tentative January 15, 2015 – May 5, 2015 CRN | Course | Sec. | Title | Cr | Instructor | Day | Time | Room | Location | 20911 | BUS500 | 191 | Business Law, Ethics, and Social Responsibility | 3 | McKenna | Thursday | 6:00-8:50 pm | SL 411 | Worcester | 20912 | BUS500 | 1960 | Business Law, Ethics, and Social Responsibility | 3 | McKenna | Saturday* | 1:00-4:30 pm | | Blended | 20913 | BUS517 | 1960 | Graduate Qualifying Project in Management | 3 | Wulf | Saturday* | 8:30–Noon | | Blended | 20914 | BUS522 | 191 | Global Business Experience: China | 3 | Zeng | Saturday^ | 8:30am -4:30 pm | TBD | Blended | 21318 | BUS598 | 1960 | Globalization, Social Responsibility and Org. Strategy | 3 | Sweeney | Saturday* | 1:00-4:30 pm | | Blended | 21320 | BUS598 | 1960 | Introduction to Health Systems | 3 | Johnson | Saturday* | 1:00-4:30 pm | | Blended | 22067 | BUS598 | 191 | Introduction to Sustainability Management | 3 | O’Brien | Thursday | 6:00-8:50 pm | FL 311 | Worcester | 20915 | ETR596 | 191 | Selling and Sales | 3 | Delvy | Tuesday | 6:00-8:50 pm | SL 406 | Worcester | 20916 | FIN501 | 191 | Economics for Managers | 3 | Wang | Tuesday | 6:00-8:50 pm | WB 323 | Worcester | 20917 | FIN501 | 1960 | Economics for Managers | 3 | Wang | Saturday* | 8:30-Noon | | Blended | 21761 | MIS571 | 191 | Database Applications Development | 3 | Strong | Tuesday | 6:00-8:50 pm | WB 229 | Worcester | ......

Words: 655 - Pages: 3

Arab Spring

...MBA 7592 Current Event Paper: Arab Spring 07 December 2014 Wilmington University Abstract What is most interesting about what began in the smallest country in Northern Africa is that it had escalated to the most sweeping movement that changed the face of the Middle East for years to come. The Arab spring began to wield its head around December of 2010 in Tunisia but was truly set off once Mohamed Bouazizi a local vendor was humiliated in public by a police officer and was not permitted to sell his fruits (Staff, 2011). This has proven to be a normal practice in Tunisia, in a country where most of its population is college educated. They are unlike other Arab nations in neighboring areas; the majorities of all Tunisians are educated and have been education abroad. This was a wide spread practice across the region with regard to the inhabitants of these countries, the cruel and unjust treatment from these authoritarian leaders, corrupted law enforcement, and suppression of their religious leaders by their very own law enforcement agents. Being able to witness this first hand, observing the way of life within the region and oppressive living conditions they are subjected too, while their monarchs, military and state leaders live a very lavish life. While reviewing why the Arab spring happened, the impact it has had in the Middle East and on its economic system, we will analyze the outcome and the overall consequence it will have on the region. We will also touch on......

Words: 1985 - Pages: 8

Arab Spring

...Global Interactions November 20, 2014 Paper 1: Arab Spring The Arab Spring refers to a series of popular uprisings throughout the Arab world that began in December, 2010. The catalyst for these uprisings was a twenty-six year old Tunisian, who lit himself on fire outside of a civic building.[1] Mohamed Bouazizi was a fruit and vegetable cart vendor and was trying to sell produce on the streets when his cart was confiscated by a Tunisian government official. This was one of a series of harassments that he had experienced, and the last indignity that he suffered was being slapped by a female Tunisian government employee.[2] He then subsequently set himself on fire, and this event is was set off the Arab Spring, or the Arab Awakening, as it is also called.[3] However, this was only the catalyst; the Arab Spring is a fluid, ongoing event that is steeped in history with economic, political, and social factors contributing to its occurrence. After Mohamed’s self-immolation there were thirty days of national protests in Tunisia before the former Tunisian dictator Zine El Abidine was removed from power.[4] During this time there were others in the Arab world watching this on satellite channels like Aljazeera, so there was an increase in cases of self-immolation in other parts of the Arab world, including Egypt.[5] Many in Egypt were watching this going on and thought that if a small country like Tunisia can overthrow a dictator through popular uprising then perhaps......

Words: 1639 - Pages: 7

Grand Canyon Fin 650 Full Course- Latest 2015 Spring All Discussions and All Chapter Problems (but No Exams)

...Grand Canyon FIN 650 full Course- Latest 2015 Spring All Discussions And All Chapter Problems (But no Exams) IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM week 1 Respond to the questions posed in the Mini Case at the end of chapter 1 of the textbook by drafting an e-mail to Michelle DellaTorre in which you respond to the questions. Post your e-mail as a reply to this discussion thread. As follow up discussion, respond to two e-mails drafted by your classmates asking any questions you may have or for clarification of their explanations. This discussion thread will be used to discuss the practice problems completed in this module. After completing the problems, submit your answers to the instructor. Your instructor will specify which problems will be reviewed for discussion. Post your answers to the posted problem to this discussion thread and discuss any challenges you had with completing the problems, tips that helped you arrive at the correct answers, and/or questions you may still have. week 2 Your stockbroker suggests you concentrate your portfolio on stocks with low P/E ratios. She explains that these firms are likely to be out of favor with investors because they have a low price relative to their current earnings. Is this necessarily a good investment......

Words: 3907 - Pages: 16

Silent Spring

...English 101.11 4 October 2013 Rhetorical Analysis: Exigence: When Rachel Carson’s Silent Spring was published in September 27, 1962, it triggered a storm of disputes over the use of chemical pesticides. Her book helped raise awareness for the environment, warn humans of the dangers of using pesticides such as DDT, preserve several plant and animal species, and make the atmosphere cleaner. Her intent in writing Silent Spring was to warn the public of the dangers related with pesticide use. Throughout her book are countless case studies documenting the harmful effects that chemical pesticides have had on the environment. Along with these facts, she explains how in many occasions the pesticides have done more harm than good in eliminating the pests they were supposed to destroy. Carson points out that many of the long-term effects that these chemicals may have on the environment, as well as us humans, are still unknown in addition to her report. The argument in Carson’s Silent Spring led to the passing of environmental legislation and the establishment of government agencies to better regulate the use of these chemicals (Griswold 2012). Kairos: While working for the U.S. Bureau of Fisheries, Miss Carson first became aware of the effects of chemical pesticides on the natural environment. Her main concern was the government’s use of chemical pesticides such as DDT, a colorless substance used as an insecticide that is toxic to humans and animals when swallowed or......

Words: 1655 - Pages: 7


...SPRING Link: Packages to remember: BeanFactory: org.springframework.beans.factory.BeanFactory Interface. XmlBeanFactory: org.springframework.beans.factory.xml.XmlBeanFactory Class. It implements BeanFactory Interface. Application Context: org.springframework.context.ApplicationContext Interface. It is a sub interface of BeanFactory. ClassPathXmlApplicationContext: class. BeanFactory ClassPathXmlApplicationContext XmlBeanFactory ApplicationContext implements extends implements Spring Core Container: Spring core container is an IOC implementation in java. IOC is an architectural pattern describing to have an external entity to wire the objects. Here the wiring is done using dependency injection. IOC pattern describes to have an external entity to perform DI. IOC – Inversion of Control DI – Dependency Injection. Dependency Injection is a mechanism of making the dependencies available to the object. The other 2 approaches to do the same are, 1. Creating the dependencies 2. Pulling the dependencies. In Dependency Injection mechanism the dependencies are pushed into the object. This approach helps us in creating the object more cleanly, as the code for creating or pulling the dependencies is excluded from the object. However identifying the objects in which the DI is to be implemented is......

Words: 1559 - Pages: 7

Spring Valley

...SPRING VALLEY FOREST PRODUCTS CORPORATION Upon returning from his annual two-week vacation in early July of 2002, the treasurer of the Spring Valley Forest Products Corporation, a Mr. Fred Firr, found the firm's audited balance sheet as of June 30 on his desk. Close scrutiny of the company's financial condition as reported in this document suggested to Mr. Firr that the cash flow picture for the enterprise was deteriorating. In times gone by, the firm had been able to maintain sizeable cash balances in its bank of account, Tippecanoe Trust Company, during the major portion of the fiscal year, and had found only modest seasonal borrowings necessary. Recently, however, a lengthening of credit terms to customers necessitated by intense competition in the company's dominant product lines had increased working capital needs quite substantially. Simultaneously, lower selling prices occasioned by the same competition had diminished profit margins. For these reasons, Mr. Firr-who had starred as a quarterback in high school, felt that a careful forecast of funds needs for the remainder of 2002 was in order. Spring Valley Forest Products (SPRIVORPCO) produced plywood paneling and moldings both for lumber wholesalers and major contractors in the north central Indiana area. The verdant Wabash River Valley had proven capable of supporting the lush growths of timber necessary to the company's production activities. Most lumber, however, was purchased from independent farmers and...

Words: 1159 - Pages: 5

michael porter | PoinBreak 3D HOU BluRay 3D 1080p | Economic growth in China - 917 Words