On enterprise financial management

Basic principles of corporate finance. Principle of behavior 2. Value principle 3. Principles of financial transactions 1. Code of conduct 1. Self-interest principle People act according to their own financial interests: for financial transactions, all institutions will choose the behavior that is most beneficial to their own economy: there is no free lunch agency problem (the death of the chairman of the western oil company) opportunity cost 2. The principle of bilateral transactions has at least two applications for every financial transaction: there is no arbitrage opportunity. Don't take me as the center when making financial decisions. Don't laugh at Sun Company's acquisition of Apple Computer in the market. Principle of signal transmission Action conveys information: Action is more convincing than words. Application: Inferring the adverse selection of financial information that can't be directly observed by actual behavior. 4. Imitation principle refers to the behavior of others: when the theory can't provide the best scheme (capital structure selection), when the information cost is too high (asset valuation), follow the strategy freely. Value principle 1, present value principle Time value of money (timeliness)-The equivalent currencies at different times are not equivalent, and the cash benefits realized at different times cannot be simply added up. The asset value is equal to the sum of the present value of expected future cash income. Human nature is impatient-giving up current consumption must compensate investment opportunities with more consumption in the future-on the appreciation of money in the flow-"A bird in the hand is worth two birds in the forest" (hedging) Inflation example: A company is considering selling a piece of real estate in the first phase, and A is willing to bid 1 10,000; Party B is willing to bid115,000 yuan, but after one year, the payment company can deposit the cash in the bank at the interest rate of 10%, and the final value of10 = (1+10%)/kloc-.