ACCT 002 Lecture Notes - Lecture 40: Discounting, Capital Market, Cash Flow

• School: College of The Sequoias
• Department: Accounting (ACCT)
• Course: ACCT 002
• Professor: Chaojibai

Document Summary

23. 09. 19: coursework consists of an individually prepared report evaluating the financial strategy of a real company, the examination is 2 hour closed book exam. Fs is about strategic decisions related to: raising of funds, allocation of funds, distribution of value created, raising and managing funds in the most appropriate manner. A fundamental principle underlying finance theory is that investors will demand a return commensurate with the risk characteristics that they perceive in their investment. An investment carries a level of risk means that there is no guarantee of its final outcome. The following graph shows what the investor would need in order to match the market expectations. The diagram below is known as the risk-return" line and shows the required return for any given level of risk. Although, the axes are often referred to as risk" and return, it is important to appreciate that their full descriptions are perceived risk" and.