1. An introduction to financial institutions, investments & Management
Basic Finance 1
An introduction to financial institutions, investments & Management
Eleventh Edition By
Herbert B. Mayo

2. The Divisions of the Finance Discipline
Institutions
Investments
Corporate (business) finance

3. Key Financial Concepts
Sources of finance
Debt
Equity
Sources of return
Income
Price appreciation
Risk
the uncertainty that the expected return will not be achieved

4. Key Financial Concepts
Financial leverage: the use of borrowed funds
Valuation
Determination of what an asset is currently worth
Goal of management: maximization of shareholder value

5. Assumptions Analysis is built on assumptions.
Text illustrations employ assumptions.

6. Finance and Other Business Disciplines
Finance studied from
A business perspective
An individual’s perspective
Valuation of securities
Portfolio construction