Reviewing corporate finance

Okay. Let's review what we've talked about in this finance course. The first thing we did was introduced a topic of finance by addressing the question, what is finance? Finance is deciding what you should buy, how you should get the money to buy it, and how you should manage it once you have it. Then we talked about the financial statements, the balance sheet, the income statement, and the statement of cash flows. We discussed short-term financial management, which is monitoring and controlling the cash flows in and out of a business; the receivables, the inventory, and the payables. Then we talked about the classic tradeoff between risk and return. We talked about capital structure. What is the optimal way, the most value-increasing way to finance my operations. Then we moved to a discussion of the securities markets where stocks and bonds are traded. We talked about financial institutions, banks, insurance companies, investment banks, and mutual funds. Then we talked about capital…