Corporate Finance

Corporate Finance

Instructor: Zhao Xiaokang

The Dept. of Business Administration The Glorious Sun School of Business & Management Donghua University E-mail:zxk@dhu.edu.cn

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Course Evaluation

♦ Class tests

2 x 20% = 40% ♦ Oral presentation 20% ♦ Final exam 40% ♦ Total 100% ♦ no make-up test, the test weighting will be add to the final exam weighting for those students who missed a class test.

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Suggested further reading

♦ Corporate finance, 7e, by Ross Westerfield

and Jordan, McGraw-Hill Education, 2007 ♦ Principles of corporate finance, 7e, by Brealey and Myers, McGraw-Hill,2003

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Useful resourses

♦ Http://www.carleton.ca/financeclub ♦ Http://www.nber.org ♦ Http://www.ssrn.com/fen/index.html ♦ Http://www.wsj.com

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An Introduction to Corporate Finance

♦ Four basic Areas of Finance • Investments

• Financial Institutions • International Finance • Corporate Finance

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Investment

• • • • What kinds of investment tools we have? How to issue new securities? Security Markets Listing and listing requirements • NYSE is a dealer market or an auction market? • What do Investment banks do?

• Goldman Sachs, Merrill Lynch, JPMorgan, Lehman Brother, Saloman Smith Barney, Morgan Stanley • Investment banking: Underwrites IPOs, places private equity ... • Brokage Service: execute security transaction, offers M&A advisory services ..

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Financial Institutions

• Commercial Banks • Investment banks • Savings institutions • credit unions • mutual funds • insurance companies • pension funds • …

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International Finance

• Foreign Exchange Risk • Political Risk • Terms like LIBOR, EURO, Eurodollar • What would be the impact on Chinese products if Yuan Strengthens against Dollar?

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Corporate Finance

♦ What is corporate finance?

– A discipline concerned with value-creation for shareholders and decision-making. It is the way of thinking about money raising, investing, allocating and controlling, etc.

♦ Three...