公司金融课件 2.Framwork and T value.docVIP

A FRAMEWORK OF CORPORATE FINANCE The goal of financial management: to maximize the shareholders’ wealth. Three questions: What should the company invest (so as to earn good returns)? What is the lowest cost to get money (borrow or issue equity) in order to invest? How much cash needed to keep the company running? Work Map. Current Liabilities Current assets 流动资产 Net working capital Long-term debt Fixedassets 固定资产 Shareholders’ equity Assets (investment): Evaluation Compounding discounting Bond valuation Stock valuation 2. Capital Budgeting 资本预算 Payback Net present value Internal rate of return 内部收益率 3. Return risk Capital market efficiency(SML) Expected returns and variance Risks: systematic unsystematic (Beta coefficient) Diversification portfolios 4. Financial Statement 财务报表 Cashflow Ratio analysis Financial Planning Liabilities equity Cost of capital Cost of long-term debt Flotation costs 发行 Capital structure Weighted average cost of capital(WACC)资本加权平均成本 Financial Leverage capital structure Modigliani Miller Proposition I II Trade-off theory Pecking order theory Raising Capital 融资 Cash offer, rights offer, private placement Cash stock dividends Warrants Convertible Bonds The dividend policy controversy Financial leasing Merger Acquisitions Estimating gains and losses Leveraged buy-outs Boots Working capital management Operating and cash cycles Cash budgeting Flexible restrictive strategies TIME VALUE OF MONEY BASIC PRINCIPLE: A dollar today is worth more than a dollar tomorrow. WHY? Since money can be “rented” or INVESTED, it has an OPPORTUNITY COST so a dollar today has a different value than a dollar tomorrow; COMPOUNDING AND DISCOUNTING They are the financial tools required to make money comparable over various periods of time. (1) You run your credit card to the limit of $3,000. The intere