Fin 254

First Assignment: Submission date: June 15. 2019

Ch One: ( one page )

 Why are we interested in cash flows rather than accounting profits in determining the value of
an asset?

 What are the implications of efficient markets for us?

 What is the cause of the agency problem, and how do we try to solve it?

Reference: Keown, Arthur J. Foundations of Finance.

Ch : Two (One and half page)

 In a well-functioning economy, capital will flow efficiently from those who supply capital to
those who demand it. Transfers of capital between savers and borrowers take place in three
different ways (Ref Figure 2-1.) Briefly describe these three ways.

 What is the main different between an investment banker and a commercial banker? What
major functions does investment bank perform?

 What is the major difference between a negotiated purchase and a competitive bid purchase?

 Why might a large corporation want to raise long-term capital through a private placement
rather than a public offering?

Hints: Submit handwritten assignment

Read additional note provided to you. Write using your own word

You are allowed to use only five words together from documents.

Try to answer each question using only four sentences.

Do Paraphrase using your own sentence structure. Do not use full sentence or copy sentences from
document

If you copy from other, your submission will be considered plagiarism. Therefore, you are requested
not to share your assignment with other.