講義分析課件

1、Topic1： Introduction to Corporate FinanceKey Concepts and SkillsBasic types of financial management decisionsRole of the Financial ManagerForms of business organizationGoal of financial managementTypes of financial marketClients of financial marketTypes of financial instrumentsChapter Outline1.1 Wha

2、t is Corporate Finance1.2 Corporate Firm1.3 Goal of Financial Management1.4 Firm and Financial Markets1.5 Financial Instruments1.1 What is Corporate Finance?Corporate Finance addresses the following three questions:What long-term investments should the firm choose?How should the firm raise funds for

3、 the selected investments?How should short-term assets be managed and financed?Balance Sheet Model of the FirmCurrent AssetsFixed Assets1 Tangible 2 IntangibleTotal Value of Assets:Shareholders EquityCurrent LiabilitiesLong-Term DebtTotal Firm Value to Investors:The Capital Budgeting DecisionCurrent

4、 AssetsL-T Assets1 Tangible 2 IntangibleWhat long-term investments should the firm choose?Shareholders EquityCurrent LiabilitiesLong-Term DebtThe Capital Structure DecisionCurrent AssetsL-T Assets1 Tangible 2 IntangibleShareholders EquityCurrent LiabilitiesLong-Term DebtHow should the firm raise fun

5、ds for the selected investments?Short-Term Asset ManagementCurrent AssetsL-T Assets1 Tangible 2 IntangibleShareholders EquityCurrent LiabilitiesLong-Term DebtHow should short-term assets be managed and financed?Net Working CapitalThe Financial ManagerThe Financial Managers primary goal is to increas

6、e the value of the firm by: Selecting value creating projects Making smart financing decisions1.2 Corporate FirmCorporate form is the standard method for solving the problems encountered in raising large amounts of cash.Businesses can take other formsForms of Business OrganizationThe Sole Proprietor

7、shipThe PartnershipGeneral PartnershipLimited PartnershipThe CorporationA ComparisonCorporationPartnershipLiquidityShares can be easily exchangedSubject to substantial restrictionsVoting RightsUsually each share gets one voteGeneral Partner is in charge; limited partners may have some voting rightsT

8、axationDoublePartners pay taxes on distributionsReinvestment and dividend payoutBroad latitudeAll net cash flow is distributed to partnersLiabilityLimited liabilityGeneral partners may have unlimited liability; limited partners enjoy limited liabilityContinuity Perpetual lifeLimited lifeThe Corporat

9、e FirmChairman of the Board and Chief Executive Officer (CEO)President and Chief Operating Officer (COO)Vice President and Chief Financial Officer (CFO)TreasurerControllerCash ManagerCapital ExpendituresCredit ManagerFinancial PlanningTax ManagerFinancial AccountingCost Accounting Data Processing Bo

10、ard of Directors1.3 Goal of Financial ManagementWhat is the correct goal?Maximize revenue?Minimize costs?Maximize profit?Maximize market share?Maximize shareholder wealth?1.4 Firm and Financial Markets Fund User Fund Saver meet at Financial MarketInvestorsFinancial AssetsReturnFirmReal AssetEarnings

11、ownershipfundsFinancial MarketsInvestorsFirmsSecondary MarketmoneysecuritiesSueBobStocks and BondsMoneyPrimary MarketFinancial MarketsPrimary MarketIssuance of a security for the first timeSecondary MarketsBuying and selling of previously issued securitiesSecurities may be traded in either a dealer

12、or auction marketNYSENASDAQ Type of the Financial MarketDirect search buyers & sellers must seek each other out directlyBroker offer search services to buyers & sellers for commission Dealer purchase assets for their own inventory and sell for profitAuction all transactors gather at one place to bid

13、 on or offer a good Clients of the Financial MarketHousehold sector decide what financial assets to hold (rate of return)Business sector raise funds to invest in real assets (cost of capital)Government sector borrow money for their expendituresForeign sector hedging and investment Financial Intermed

14、iationBring together the household sector and the business sectorProvide financial servicesbankstrust companiesinsurance companiesmutual (pension) funds1.5 Financial InstrumentMoney market instruments S-T cash substitutes. T-bill, commercial paperFixed e capital market instrumentsT-bond, corporate bondEquity securitiespreferred stock, common stockDerivativesfuture, forward, option,