Security valuation In general, the intrinsic value of an asset= the present value of the stream of expected cash flows discounted at an appropriate required rate of return

Capital Budgeting: the process of planning for purchases of long-term assets. example Our firm must decide whether to purchase a new plastic molding machine for $127,000 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)

0: What are SECURITIes? A: Financial assets that Investors purchase hoping to earn a high rate of return

Balance sheet Current Current Assets Liabilities Debt and Fi Ixed Preferred Assets Shareholders

Working-Capital Management Current assets cash, marketable securities, inventory accounts receivable Long- Term Assets equipment, buildings, land Which earn higher rates of return? Which help avoid risk of illiquidity?

Accounts receivable Management Size of Investment in Accounts Receivable Percent of credit sales to Total sales Level of sales Terms of sale Quality of customer Collection Efforts

International Business finance Exchange Rate: the price of one currency in terms of another

Term loans Characteristics of Term Loans Secured loans 1-to 10-year maturity Repaid in periodic installments

一、“三步走”的发展战略 二、全面建设小康社会 三、要树立和落实科学发展观 四、推动经济结构战略性调整,走新型工业化道路 五、科学兴国和可持续发展战略