New Venture Finance Corporate Finance Review（一）.pptVIP

New Venture Finance: Corp. Finance Review *__________________________________________ Real Sector The Firm Financial Sector Corporate Investment Corporate Financing Decisions: Utilization of Funds Decisions: Acquisition of Funds ? Business Markets Financial Markets ? The Firms Balance Sheet __________________________________________________________ ? Cash A/P A/R Other Current Inventory Liabilities _________________ _____________________ Products Total Current Assets Total Current Liabilities Customers Competitors Fixed Assets: Capital: Savers/ Employees Plant Equipment Debt Investors Tangible Assets Preferred Stock Technology Common Equity --Retained Earnings --Common Stock ________________ _____________________ ? Total Assets Total Liabilities Equity New Venture Finance: Corp. Finance Review *__________________________________________ Financing (sources of funds) must equal the investment in assets (use of funds). Managers make investment decisions that generate earnings so that investors get a return on investment. Financial Management is defined as the planning for, acquiring, and utilization of funds in a manner that maximizes the firm’s economic efficiency. New Venture Finance: Corp. Finance Review *__________________________________________ The Corporate Finance View of the World: Bus. Transactions $$ $$ Securities New Venture Finance: Corp. Finance Review *__________________________________________ The corporation has advantages over the other forms or organization: Unlimited lives that extend beyond the lives of the founders or original managers. Simple transferability of ownership: investors and managers are two separate groups, so investors can buy or sell th