英文版公司理财课件chapter 1.pptVIP

COPYRIGHT?ZHULI Fundamentals of Corporate Finance Grades Assignments (25%) Class participation (15%) Final exam (60%) E-mail: yiwenw@163.com Chapter 1 The Corporation and the Financial Manager Objectives Give examples of the investment and financing decisions that financial managers make, and explain the responsibilities of the CFO, treasurer, and controller Cite some of the advantages and disadvantages of organizing a business as a corporation Explain why maximizing market value is the logical financial goal for the corporation Understand why conflicts of interest arise, especially in large, public corporations Explain how corporations mitigate conflicts and encourage ethical behavior Content Investment and financing decisions What is a corporation? Who is the financial manager? Goals of the corporation What is finance? Finance can be defined as the art and science of managing money. Corporations face two broad financial questions: What investments should the firm make? And how should it pay for those investments? The first question involves spending money; the second involves raising it. The Investment Decision Investment decision /capital budgeting decision: decision to invest in tangible or intangible assets Balance Sheet Model of the Firm The Investment Decision If a project’s value is greater than its required investment, then the project is attractive financially The financial manager helps the firm to invest in projects that are worth more than they cost. The Financing Decision Financing decision: the form and amount of financing of a firm’s investment The Financing Decision The choice between debt and equity financing is often called the capital structure decision Here “capital” refers to the firm’s sources of long-term financing. A firm that is seeking to raise long-term financing is said to be “raising capital.” Capital Structure Short-Term Asset Management Self-Test 1.1 Are the following capital budgeting or financing decisions? Hint: In o