2. FINANCE 415 BUSINESS FINANCING DECISIONS

3. GO OVER SYLLABUS OFFICE HOURS, ETC. COURSE PROCEDURES BASIC THRUST OF THE CLASS –INSTITUTIONAL DETAIL –THEORY –APPLICATIONS ( CASES ETC.)

4. THREE FOCAL ISSUES IN MANAGERIAL FINACE KIND OF BUSINESS TO INVEST IN WHERE TO ACQUIRE NEEDED CAPITAL HOW TO MANAGE CASH FLOW

5. FINANCING BUSINESSES SELF FINANCING - 80% FOR ALL FIRMS. DIFFICULT FOR SMALL, GROWING FIRMS EXTERNAL FINANCING –BORROWING FROM VARIOUS SOURCES –ISSUING PUBLIC DEBT INSTRUMENTS –ISSUING COMMON STOCK

6. PREFERENCE RANKINGS 1 -RETAINED EARNINGS -5.61 2 -STRAIGHT DEBT - 4.88 3 -CONVERTIBLE DEBT - 3.02 4 -EXTERNAL COMMON EQUITY - 2.42 5 -STRAIGHT PREFERRED - 2.22 6 -CONVERTIBLE PREFERRED - 1.72

7. BALANCE SHEET IDENTITY ASSETS LIABILITIES OWNERS’ EQUITY [A = L + OE] FORMAT

8. FOCUS ON CASH FLOW LINKS INCOME STATEMENT AND BALANCE SHEET HISTORICAL PERSPECTIVE USE TO DISCUSS MANAGERIAL EFFECTS OF FINANCING DECISIONS

9. SAMPLE OF MARKET CREATION HABITAT FOR HUMANITY USE NO-INTEREST MORTGAGES ALWAYS CONSTRAINED FOR CASH WHAT TO DO?