TAILIEUCHUNG - Lecture Introduction to finance: Markets, investments, and financial management (14th edition): Chapter 10 - Melicher, Norton

Chapter 10 - Bonds and stocks - Characteristics and valuations. This chapter includes contents: Identify the major sources of external long-term financing for corporations, describe major characteristics of corporate bonds, identify the reasons why investors seek stocks for an investment vehicle,. | Chapter 10 Bonds and Stocks: Characteristics and Valuation © 2011 John Wiley and Sons Chapter Outcomes Identify the major sources of external long-term financing for corporations. Describe major characteristics of corporate bonds. Identify the reasons why investors seek stocks for an investment vehicle. Describe major characteristics of preferred stock and common stock. Describe the process for issuing dividends by a firm. Explain how financial securities are valued in general and specifically for bonds and stocks. What is a financial asset? A claim against the income or assets of an individual, business, or government. Examples: Shares of stock Home Mortgage Car Loan Long-term Financing Sources for Business New security issues 2008 2009 Corp Bonds Corp Stocks Bonds Public Sold abroad Net Long-term Financing Sources for Business 2008 2009 Bonds Common Stock Internal Financing As we see, in addition to retained earnings, businesses can raise funds by: Selling shares (external equity) Issue debt (bonds) Funds can be raised publicly or privately History Shows . Internal/external financing varies over the business cycle Common stock is a major source of external equity Bonds are a major source of long-term external financing cheaper than equity bonds mature And Overseas Financing Has Risen Over Time. More real assets are overseas for firms At times, financing costs are lower overseas No costly SEC process Large issue sizes require a global marketplace Debt Capital A contract between borrower/lender Bankruptcy/reorganization threat if contract is violated Priority claim on assets, cash flow Less return potential than equity Little/no voice in management General Terms Associated with Debt: Public versus private debt issues Some forms of debt capital: Bonds Bank loans Commerical finance company loans General Terms Associated with Debt: Par

• Tài chính doanh nghiệp
• Financial analysis
• Financial management
• Lecture Introduction to finance
• Financial markets
• Long term financing sources
• Debt capital
• International financial statement
• Financial statement
• International financial statement analysis
• Financial statement analysis
• Financial reporting
• Financial analysis techniques
• Financial information
• Liquidity analysis
• Trend statements
• Financial reporting mechanics
• Financial reporting quality
• Financial decisions
• Lecture Financial statement analysis
• Business analysis
• Financial statement analysis techniques
• Efficient market
• Personal financial planning
• Personal financial
• Lecture Personal financial planning
• Financial planning
• Financial statements analysis
• Financial statements
• Fundamentals of financial management
• Common size analysis
• Financial ratio
• Statement analysis
• Supplementary information
• Income statements
• Balance sheets
• Cash flow statements
• Inventory valuation methods
• Long lived assets
• Noncurrent liabilities
• Credit quality
• Income taxes
• Postemployment benefit plans
• Intercorporate investments
• Multinational operations
• Evaluating quality
• Operating activities
• Forecasting financial statements
• Financial statement analysis package
• Preparing a term project
• Accounting information
• Analysis environment