Chapter 1


What is the first chapter of the finance road map?

Chapter 1 Introduction to Finance Road Map Part A Introduction to ?nance. •Financial decisions and ?nancial markets. •Present value. Part B Valuation of assets, given discount rates. Part C Determination of risk-adjusted discount rates.

What are the questions asked in introduction to finance chapter 1?

Fall 2006cJ. Wang 15.401 Lecture Notes 1-2 Introduction to Finance Chapter 1 Questions we would like to answer in this course: 1. How ?nancial markets determine asset prices? 2. How corporations make ?nancial decisions? •Investments: - What projects to invest in? •Financing: - How to ?nance a project? •Payout: - What to pay back to shareholders?

What is the conclusion of Chapter 1 Introduction to finance 1-17?

Chapter 1 Introduction to Finance 1-17 Conclusions: 1. Managers should maximize ?rm’s current market value. 2. Shareholder di?erences can be settled in ?nancial markets by trading on their own account. 3. Perfect ?nancial markets allow separation of ownership and management. Practical Issues:

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