TAILIEUCHUNG - Lecture Financial institutions, instruments and markets: Chapter 5 - Christopher Viney

Chapter 5 - Corporations issuing equity in the share market. In this chapter, you will learn: Examine issues relevant to the choice between debt and equity funding, outline ASX floatation and listing rules, describe the equity-funding alternatives available to newly listed and established corporations, distinguish between equity and quasi-equity securities. | Chapter 5 Corporations Issuing Equity in the Share Market Website: Learning Objectives Examine issues relevant to the choice between debt and equity funding Outline ASX floatation and listing rules Describe the equity-funding alternatives available to newly listed and established corporations Distinguish between equity and quasi-equity securities Chapter Organisation Introduction The Investment Decision The Financing Decision Initial Public Offering (IPO) Listing a Business on the Stock Exchange Equity-funding Alternatives for Listed Companies Summary Introduction The objective of financial management is to maximise shareholder value There are four main aspects of financial management Investment decision (capital budgeting) In which assets to invest? Financing decision (capital structure) How to fund the purchase of these assets? Introduction (cont.) Liquidity (working capital) management How to best manage current assets and current liabilities? Dividend policy decision How to retain and/or distribute profits? This chapter focuses on the financing (funding) decision Chapter Organisation Introduction The Investment Decision The Financing Decision Initial Public Offering (IPO) Listing a Business on the Stock Exchange Equity-funding Alternatives for Listed Companies Summary The Investment Decision A corporation first determines the assets in which it will invest funds according to organisational objectives Real assets . plant and equipment Financial assets . equities, bonds Competing investment alternatives should be evaluated on the basis of shareholder wealth maximisation The Investment Decision (cont.) Two important measures used to quantify the contribution of an investment to shareholder wealth are Net present value (NPV) Internal rate of return (IRR) The Investment Decision (cont.) NPV The difference between the present value of cash flows associated with an

• Tài chính doanh nghiệp
• Financial institutions
• Financial Instruments
• Financial markets
• Financial system
• Impact of globalisation
• Functions of the financial system
• Lecture Financial markets and institutions
• Financial institutions markets
• Risks at financial institutions
• Market risk
• Savings institutions
• Credit unions
• Commercial banks
• Financial statements
• Financial markets and institutions
• Interest rates change
• Financial institutions exist
• Central banking
• Capital markets
• Money markets
• Interest rate fundamentals
• Interest rates
• Security valuation
• Federal reserve system
• Monetary policy
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Derivative securities markets
• Futures markets
• Commercial bank liabilities
• Regulation of commercial banks
• Deposit guarantee funds
• Insurance companies
• Life insurance companies
• Securities firms
• Investment banks
• Mutual funds
• Hedge funds
• Pension funds
• Private pension funds
• Managing credit risk
• Balance sheet
• Managing liquidity risk
• Managing interest rate risk
• Insolvency risk
• Managing risk
• Loan sales
• Managing risk off the balance sheet