Investment and Financing Decisions
The nature of capital investment decisions
◆ Making an outlay immediately vs. Yielding benefits in the distant future.
GE borrows $400 million from bond investors.
Microsoft issues 100 million shares to buy a small technology company.
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Goals and Governance of the Corporation
What is a Corporation?
Investment and Financing Decisions
Capital investment affects the amount of future cash flows generated, the timing of those cash flows, and the variability or risk of those future cash flows and thus, the value or worth of the capital budgeting decisions.
This chapter introduces the corporation, its goals, and the roles of financial managers.
Source: U.S. Census 2008 SUSB Annual Data
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What is a Corporation?
To make corporate investment or financing decision
Capital Budgeting Decision
Decision to invest in tangible or intangible assets.
…also called the Investment Decision
◆ A single large amount of outlay vs. A stream of smaller amount of cash inflows.
◆ It is difficult to withdraw from an investment. ◆ Time is vital to investment decision–making
Capital Structure
The mix of long term debt and equity financing.
Investment and Financing Decisions
The Investment Decision
Real Assets
The Financing Decision
Financial Assets
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Investment and Financing Decisions
Are the following capital budgeting or financing decisions?
Apple decides to spend $500 million to develop a new iPhone.
ቤተ መጻሕፍቲ ባይዱ
Investment and Financing Decisions
Financing Decision
Raising money that the firm needs for its investments and operations.
Determining the amount, maturity and type of funds raised in financial markets.
8. 《公司理财》（第二版） 蒋 屏编著 清华大学出版社 2013年4月
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Investment and Financing Decisions
大学能做的最重要的事是，学生从学校毕业50 年以后，学生还能顺应时代的发展变化而继续学习、 进取、改变，这将能造就社会的领导者。
—— 哈佛大学荣誉校长陆登庭教授
于北京首届中外大学校长论坛
参考书目
1. 《公司理财》（第五版，双语教材） 理查德.A.布雷利等著 中国人民大学出版社
． 2.《公司理财》（第九版，双语教材） 斯蒂芬.A.罗斯 等著 机械工业出版社
Corporate Finance
School of International Trade & Economics
Professor Shao Xueyan
课程宗旨
创造财富 谋之有道 取之有术 管之有方
学习方法
学而不思则罔 思而不学则殆
选自《论语》
哈佛学生学习不是与未来就业相匹配的，他们 学的东西可能与他们将来所要做的工作完全不一样。 广泛的知识面、有专业技能、有一定的远见、有能 力在职业生涯中继续学习是哈佛对学生的培养目标。
Corporation-A business organized as a separate legal entity owned by stockholders.
Types of Corporations:
Public Corporations Private Corporations
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3. 《财务报表分析》（技巧 . 策略) 戴欣苗编著 清华大学出版社
． 4.《上市公司虚假会计报表识别技术》 刘姝威 经济科学出版社
5.《现代公司理财》 姚益龙 中山大学出版社
6.《沃伦巴菲特的投资组合》 [美]罗伯特.哈格斯特朗 机械工业出版社
7.《百万富翁的智慧》[美]托马斯.J.斯坦利博士 中国大百利全书出版公司