Exam Coverage
Exam coverage for the FINA 4221 Final Exam includes advanced
financial principles, analytical methods, and decision-making
concepts commonly covered in upper-level finance coursework. It
focuses on financial statement analysis, time value of money, risk
and return, valuation, capital budgeting, cost of capital, financing
decisions, and corporate financial management. The exam also
evaluates the ability to apply quantitative techniques and financial
theories to real-world business and investment scenarios.
,What is Corporate Finance?
Involves examining companies:
(1)How they decide to invest in ideas and projects (2)How they can
raise money for those investments, and how this affects the
value of the company
Why is Corporate Finance important?
Every organization/company in every industry faces these financing
decisions
,The main goals of Finance is:
to understand the value and risk of assets
Time Value of Money
One dollar today is not the same as one dollar a year from now
, Key Takeaway of Present Value:
The value of anything (company, project, asset,
etc.) is given by the present value of the cash flows that it provides
Bonds
Loans that organizations sell; an investor essentially is loaning
money to an organization, and the organization promises to pay
back
(more) money