Bachelor's Degree

Chapter 1 - Value - Goals and Governance of the Firm Corporations invest in real assets -generate cash inflows and income -tangible - machinery, buildings -intangible - brand names, patents Financial manager faces two questions -what investments should the corporation make - involves spending money -how should it pay for those investments - involves raising money Secret of success is to increase value of the corporation and stock price -how to do it? -how well all managers and employees work to increase value -identify risks and make sure they are managed properly Corporation can -invest in new assets -or give cash back to shareholders Opportunity cost of capital that shareholder contribute -can the corporation add value and earn a higher return than shareholders can earn for themselves Reoccurring themes -Maximizing value -Opportunity cost of capital -Crucial importance of incentives and governance Financial asses or securities -corporation sells claims on

MIT OCW Finance Theory I This course introduces the core theory of modern financial economics and financial management, with a focus on capital markets and investments. Topics include functions of capital markets and financial intermediaries, asset valuation, fixed-income securities, common stocks, capital budgeting, diversification and portfolio selection, equilibrium pricing of risky assets, the theory of efficient markets, and an introduction to derivatives and options. Video Lectures