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?

Three Measures of a Project's Risk Project Standing Alone risk

Top Creators of shareholder value 1999 invested cost of MVA capital return capital Microsoft3282571095456.16%12.64 Gen elect285,320652981929911.92 Intel

2 concepts that enhance our understanding of risk... 1) Operating Leverage affects a firm's business risk. 2) Financial Leverage affects a firm's financial risk

Dilemma: Should the firm use retained earnings for: a) financing profitable capital inⅴ estments? b)Paying dividends to stockholders

Liquid asset management S CASH- motives for holding casha Transactions: to meet cash needs that arise from doing business. Precautionary: having cash on hand for unexpected needs Speculative: to take advantage of potential profit-making situations

Innovations in Risk Management Futures contract a contract to buy or sell a stated commodity or financial claim at a specified price at some specified future time

Corporate restructuring 1960s- Mergers of unrelated firms formed huge conglomerates 1980s-Investors purchased conglomerates and sold off the pieces as independent companies. 1990s- Strategic mergers of related firms to create synergies

一、单项选择题 1、反映企业价值最大化目标实现程度的指标是() A.利润B.总资产报酬率C.每股市价D.市场占有率 2、企业价值最大化目标强调的是企业的() A.预期获利能力B.实际利润率C.实际利润额D.生产能力

5.1投资的概念与分类 5.2短期投资 5.3长期股权投资 5.4长期债权投资 5.5长期投资减值