Market Portfolio-Portfolio of all assets in the economy. In practice a broad stock marke index, such as the S&P Composite, is used to represent the market. Beta- Sensitivity of a stock's return to the return on the market portfolio

Venture Capital The Initial Public Offering The Underwriters General Cash Offers The Private Placement

When there are no taxes and capital markets function well, it makes no difference whether the firm borrows or individual shareholders borrow. Therefore, the market value of a company does not depend on its capital structure

复旦大学：《财务管理 Financial Management》课程教学资源（课件）Chapter 02 How to Calculate Present Values

Common Stock Preferred Stock Corporate Debt Convertible Securities Patterns of Corporate Financing Irwvin/McGraw-Hill

复旦大学：《财务管理 Financial Management》课程教学资源（大纲）Syllabus of Financial Management

SInvestment Decision vs. Financing Decision OMarket Efficiency →Weak form efficiency →Semi -strong- form efficiency >Strong form efficiency OLessons of Market Efficiency Irwvin/McGraw-Hill

Geothermal's Cost of Capital Weighted Average Cost of Capital (WACC) Capital Structure Required Rates of Return Big Oil's WACC SInterpreting WACC Flotation Costs

Organizing a Business The role of The Financial Manager Financial Markets Who Is The Financial Manager Corporate Goals& Incentives Value Maximization Irwvin/McGraw-Hill The McGraw-Hill Companies

Topics Covered SHow Dividends are Paid SHow Do Companies Decide on Dividend Payments OWhy Dividend Policy Should Not Matter OWhy Dividends May Increase Firm Value OWhy Dividends May Reduce Firm Value Irwin/McGraw-Hill OThe McGraw-Hill Companies, Inc., 2001