总论 公司理财.pptVIP

COPYRIGHT?ZHULI 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, cooperative behavior Content Investment and financing decisions What is a corporation? Who is the financial manager? Goals of the corporation The Investment Decision Investment decision /capital budgeting decision: decision to invest in tangible or intangible assets If a project’s value is greater than its required investment, then the project if attractive financially The Financing Decision Financing decision: the form and amount of financing of a firm’s investment The choice between debt and equity financing is often called the capital structure decision Financing and investment decisions are connected The amount of investment determines the amount of financing that has to be raised The investors who contribute financing today expect a return on that investment in the future Thus, the investments that the firm makes today have to generate future returns for payout to investors Content Investment and financing decisions What is a corporation? Who is the financial manager? Goals of the corporation Corporation Corporation: business organized as a separate legal entity owned by stockholders A corporation is legally distinct from its owners, therefore confers limited liability The separation of ownership and management is one distinctive feature There is an important tax drawback: double taxation Content Investment and financing decisions What is a corporation? Who is the financial manager? Goals o