MAF101 Lecture Notes - Lecture 1: Capital Budgeting, Capital Structure, Dividend Policy
Document Summary
Determining the values, risks and returns of financial assets and real assets. Determining the optimal mix of securities that should be held in a portfolio (portfolio management) Help individual companies determine how to invest money. One of the largest industries in the world. Their responsibility to obtain and use finds in a way that will maximise the value of the firm. Credit terms under which customers can buy. Financial assets: refers to claims to cash flows (e. g. equity/debt securities) Real assets: are to produce goods/services (e. g. machinery, equipment, intellectual properties) Producing more product with less resources and producing less wastage. Sustainability = the ability to continue operating as a business or corporation and and to meet financial, social and environmental obligations. Value = the present (current) value of the cash flows an asset is expected to generate in the future. Notice the difference between fiance3 and accounting: cash flow vs profit/loss.
