TOPIC 4 Corporate Finance & Financial Manager必看课件资料.ppt

Financial Institutions Intermediaries Investors Depositors Policyholders Investors Obligations Funds ASSET EVALUATION TOPIC 4 Corporate Finance and the Financial Manager Topics Covered What Is A Corporation? The Role of The Financial Manager Separation of Ownership & Management Financial Markets Financial System Many sets of people have stakes in a firm The firm is a nexus of contracts (written and unwritten) The Firm Shareholders Government Suppliers Employees/ Managers Bondholders Customers Equity Dividends Debt Interest Labor Wages Inputs Price Goods & Services Price Institutions Tax Community/ Environment Social Morality Law What is Finance 1. What is the definition of the finance as a social science? ----Finance is a branch of economics. ---- Economics is the study of the allocation of scarce resources among competing ends. ---- Economics is the science of trade-offs. ---- Finance is the study of the allocation of scarce resources through time. 2. How is technology having a major influence on finance? Characteristics of finance Transforming present dollars into future dollars Store - put the money under your mattress Lend - lend the money to someone Invest - buy stocks or bonds Speculate - buy oil futures Transforming present physical resources into future resources Produce - turn labor and material into new goods and services Transforming future dollars into present dollars Borrow - borrow from somebody Issue securities - sell claims to future cash Two kinds of financial decisions Investment decisions: Which investment projects should be accepted? What are good and bad decision rules? Financing decisions: How should they be financed? How much from debt, equity, or retained earnings? We need to know all the stakeholders of the firm and the nature of their claims. We need to understand how financial decisions affect the values of their claims. Forms of Business Organization ?The Sole Proprietorship（独资企