Task Team of FUNDAMENTAL ACCOUntING hool of Business, Sun Y at-sen University Lesson 10 Understanding and Using financial Statements Exercise Short answer questions 1. What are the possible decisions that can be made with the use of financial analysis? Answer: Share investment decisions. This

Introduction a dollar today is worth more than a dollar tomorrow a safe dollar is worth more than a risky dollar People have different degrees of risk aversion. Some are more willing to take a chance than others A tradeoff exists between risk and return

Capital Budgeting: the process of planning for purchases of long term assets。 ° example Suppose our firm must decide whether to purchase a new plastic molding machine for $125.000. How do we decide? will the machine be profitable? Will our firm earn a high rate of return on the investment?

Where we've been. Basic Skills:(Time value of money, Financial Statements) Investments: (Stocks, Bonds, Risk and Return) Corporate Finance: (The Investment Decision- Capital Budgeting)

1. What are the possible decisions that can be made with the use of financial analysis? Answer: Share investment decisions. This includes whether to invest in shares and the type of share (common, preferred). Lending decisions. This includes whether to purchase retractable preferred shares, issue mortgages, buy corporate bonds on the open market, operating line of credit

Target Audience Consultants Investment analysts Entrepreneurs Product Managers

Credit ratings In the s&P rating system, AAA is the best rating. After that comes AA, A BBB. BB.B. and ccc The corresponding Moody's ratings are Aaa. Aa,a. Baa, Ba.b. and caa Bonds with ratings of BBB (or Baa) and above are considered to be investment grade

•加速模型 •利润决定的投资函数模型 •新古典投资函数模型 •一个中国的投资函数模型

Chapter Objective: This chapter discusses the methodology that a multinational firm can use to analyze the investment of capital in a foreign country

一、确定性(Certainty):对于未来结果拥有完全的信息。 二、风险(Risk):知道未来可能的结果,并可以对每种结果赋予概率。 三、不确定性(Uncertainty):不知道准确的结果及其概率