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Corporate Finance
Gijs van de Zande
Lecture 1
Wednesday 31 August 2016

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Corporate finance is important because it involves real life stock-examples

CH0

The structure of financial goals




Profitability is the most important financial goal. If you are not profitable you are not
sustainable

Accounting Finance
Records the past Discounting future cash flows
Works with real amounts Works with forecasts

Coca cola
Accounting on the books: 7 billion
Finance in the market: 70-80 billion

Persistence: tomorrow = yesterday
Climatology: tomorrow = last year same day
Commercial: Weather models

When a lot of people say a stock is going to perform well, it is going to perform bad

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