Notes Corporate Finance
Week 2
Chapter 3
Financial markets provide liquidity because Institutions and Households invest money into the
market for the companies.
This provides opportunities to invest and provides risk transfer and difersification.
Chapter 4
Cash rules for time travel
FVn = C x (1 + r)n
FV = future value
C = cashflow
R = interest
N = time in years
Week 2
Chapter 3
Financial markets provide liquidity because Institutions and Households invest money into the
market for the companies.
This provides opportunities to invest and provides risk transfer and difersification.
Chapter 4
Cash rules for time travel
FVn = C x (1 + r)n
FV = future value
C = cashflow
R = interest
N = time in years
