ECFI305 ch1财管.pptxVIP

Essentials of Corporate FinanceSixth EditionChapter 1Introduction to Financial ManagementLearning Objectives2Explain the role of finance, and the different types of jobs in finance.Identify the advantages and disadvantages of different forms of business organizations.Explain the links between stock price, intrinsic value, and executive compensation.Discuss the importance of business ethics and the consequences of unethical behavior.Identify the potential conflicts that arise within the firm between stockholders and managers and between stockholders and bondholders and discuss the techniques that firms can use to mitigate these potential conflicts.Essentials of Corporate FinanceWho is The Financial Manager?Chief Financial Officer(CFO)TreasurerControllerEssentials of Corporate FinanceThe Role of The Financial ManagerCapital Budgeting DecisionDecision to invest in tangible or intangible assets.…also called the Investment DecisionEssentials of Corporate FinanceThe Role of The Financial ManagerFinancing DecisionRaising money that the firm needs for its investments and operations.Capital StructureThe mix of long term debt and equity financing.Essentials of Corporate FinanceThe Role of The Financial ManagerWorking Capital ManagementWorking capital refer to a firm’s short-term assets and short-term liabilities.Essentials of Corporate FinanceThe Role of The Financial Manager(1)(2)(4a)(3)(4b)(1) Cash raised from investors(2) Cash invested in firm(3) Cash generated by operations(4a) Cash reinvested(4b) Cash returned to investorsFirmsFinancialoperationsInvestorsManagerReal assetsEssentials of Corporate FinanceOrganizing a BusinessEssentials of Corporate FinanceTypes of Business OrganizationsSole ProprietorshipsPartnershipsGeneral Partnerships - Partnership AgreementLimited Liability Partnerships - General Partners - Limited PartnersCorporationsWhat is a Corporation?Essentials of Corporate FinanceArticles of Incorporation(Charter)BylawsTypes of CorporationsPublic CompaniesPrivat