【财务管理英文课件】ofFinancialManagement.pptVIP

Conclusions and Review of Financial Management Types of Finance Business Finance Macro Finance Micro Finance Personal Finance Functions of Finance Financing Investing Functions of Finance Financing Where to get funds When to get funds How much to raise How much to pay for funds Investing What to do with funds once raised Forms of Business Organization Sole Proprietorship Partnership Corporation Sole Proprietorship Advantages Ease of formation Subject to few regulations No corporate income taxes Disadvantages Limited life Difficult to raise capital Unlimited liability Partnership Advantages Possible synergy Subject to few regulations No corporate income taxes Disadvantages Limited life Difficult to raise capital Possible conflicts Corporation Advantages Unlimited life Ease of transferring ownership Limited liability Disadvantages Double taxation Cost of organization Cost of report filing The Role of Financial Management What is Financial Management? The Goal of the Firm Organization of the Financial Management Function What is Financial Management? Concerns the acquisition, financing, and management of assets with some overall goal in mind. Investment Decisions What is the optimal firm size? What specific assets should be acquired? What assets (if any) should be reduced or eliminated? Financing Decisions What is the best type of financing? What is the best financing mix? What is the best dividend policy? How will the funds be physically acquired? Asset Management Decisions How do we manage existing assets efficiently? Financial Manager has varying degrees of operating responsibility over assets. Greater emphasis on current asset management than fixed asset management. What is the Goal of the Firm? Maximization of Shareholder Wealth! Value creation occurs when we maximize the share price for current shareholders. Shortcomings of Alternative Perspectives Could increase current profits while harming firm (e.g., defer maintenance, issue common stock to buy T-b