Corporate Finance(公司金融讲义上海交大 Fei YIwen ).pptVIP

Corporate Finance Instructor: Fei Yiwen E-mail: ywfei@sjtu.edu.cn Corporate Finance Sub discipline of economics – The theory of the firm Requires an understanding of The banking system The operation of money Capital markets Corporate Finance Objective Wealth maximization Strategy Acquisition, financing and management of ASSETS Operational Considerations Asset Acquisition Which are the best assets to buy? When should you buy them? Operational Considerations Asset Financing What is the best type of financing? What is the best financing mix? Operational Considerations Asset Management How do you achieve the most efficient asset mix? Cash flow considerations Operational Considerations Wealth Maximization Cash flows Timing Risk versus Return Goal = steadily appreciating share price Agency Relationships Agency Costs Management incentives Monitoring expenses Bonding expenses Opportunity cost Inefficient agency relationships = agency problems Wealth Maximization Profit- useful but ignores Risk Time value of money Wealth Maximization Cash Flow - equity and debt Net Present Value (NPV) The present value of all future cash flows minus initial cost Other Considerations Ethics Moral duty and obligation Public relations Investor confidence Career Prospects CFO – overall responsibility -Financial Policy - Corporate Planning Treasurer Cash Management Raising Capital Controller Financial Statements Key Points So Far Maximize Shareholder wealth through the Acquisition, financing and management of assets that maximize returns whilst minimizing the risks Goal = steadily appreciating share price Course Objective The objective of this module is to build an understanding of some concepts that are fundamental to the study of corporate finance and asset pricing. In addition to supporting a basic understanding of finance, these concepts are used in many other finance courses that you might subsequently take. The topics covered include