对外贸公司理财第一节.ppt

Chapter 1 Introduction to Corporate Finance,Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.,McGraw-Hill/Irwin,Key Concepts and Skills,Know the basic types of financial management decisions and the role of the financial manager Know the financial implications of the different forms of business organization Know the goal of financial management Understand the conflicts of interest that can arise between owners and managers Understand the various types of financial markets,Chapter Outline,Corporate Finance and the Financial Manager Forms of Business Organization The Goal of Financial Management The Agency Problem and Control of the Corporation Financial Markets and the Corporation,Corporate Finance,Some important questions that are answered using finance: What long-term investments should the firm take on? Where will we get the long-term financing to pay for the investment? How will we manage the everyday financial activities of the firm?,5,Balance Sheet Model of the Firm,6,The Capital Budgeting Decision,Current Assets,Fixed Assets 1 Tangible 2Intangible,Shareholders Equity,Current Liabilities,Long-Term Debt,What long-term investments should the firm choose?,7,The Capital Structure Decision,How should the firm raise funds for the selected investments?,Current Assets,Fixed Assets 1 Tangible 2 Intangible,Shareholders Equity,Current Liabilities,Long-Term Debt,8,Short-Term Asset Management,How should short-term assets be managed and financed?,Net Working Capital,Shareholders Equity,Current Liabilities,Long-Term Debt,Current Assets,Fixed Assets 1 Tangible 2 Intangible,A. Deciding when to repay a long-term debt B. Determining how much inventory to keep on hand C. Determining how much debt should be borrowed from a particular lender D. Deciding whether or not to open a new store E. Determining how much money should be kept in the checking account,Which one of the following is a capital budgeting decision?,1-9,I. accounts payable II. accounts receivable III. long-term debt IV. inventory A. I and II only B. I and III only C. II and IV only D. I, II, and IV only E. I, III, and IV only,Working capital management includes decisions concerning which of the following?,1-10,Financial Manager,Financial managers try to answer some or all of these questions The top financial manager within a firm is usually the Chief Financial Officer (CFO) Treasurer oversees cash management, credit management, capital expenditures, and financial planning Controller oversees taxes, cost accounting, financial accounting and data processing,1-12,Hypothetical Organization Chart,1. The person generally directly responsible for overseeing the tax management, cost accounting, financial accounting, and information system functions is the: A. chairman of the board. B. director. C. chief executive officer. D. treasurer. E. controller. 2. The person generally directly responsible for overseeing the cash and credit functions, financial planning, and capital expenditures is the:,1-13,Which of the following questions are addressed by financial managers? I. How should a product be marketed? II. Should customers be given 30 or 45 days to pay for their credit purchases? III. Should the firm borrow more money? IV. Should the firm acquire new equipment?,Financial Management Decisions,Capital budgeting What long-term investments or projects should the business take on? Capital structure How should we pay for our assets? Should we use debt or equity? Working capital management How do we manage the day-to-day finances of the firm?,Forms of Business Organization,Three major forms in the United States Sole Proprietorship Partnership General Limited Corporation Limited Liability Company,Sole Proprietorship,Advantages Easiest to start Least regulated Single owner keeps all the profits Taxed once as personal income,Disadvantages Limited to life of owner Equity capital limited to owners personal wealth Unlimited liability Difficult to sell ownership interest,Partnership,Advantages Two or more owners More capital available Relatively easy to start Income taxed once as personal income,Disadvantages Unlimited liability General partnership Limited partnership Partnership dissolves when one partner dies or wishes to sell Difficult to transfer ownership,Corporation,Advantages Limited liability Unlimited life Separation of ownership and management Transfer of ownership is easy Easier to raise capital,Disadvantages Double taxation (income taxed at the corporate rate and then dividends taxed at the personal rate),I. limited life of the firm II. personal liability for firm debt III. greater ability to raise capital than a sole proprietorship IV. lack of ability to transfer partnership interest A. I and II only B. III and IV only C. II and III only D. I, II, and IV only E. I, III, and IV only,Which of the following are disadvantages of a partnership?,1-20,I. limited liability for firm debt II. double taxation III. ability to raise capital IV. unlimited firm life A. I and II only B. III and IV only C. I, II, and III only D. II, III, and IV only E. I, III, and IV only,Which of the following are advantages of the corporate form of business ownership?,1-21,Goal of Financial Management,What should be the goal of a corporation? Maximize profit? Minimize costs? Maximize market share? Maximize the current value of the companys stock? Does this mean we should do anything and everything to maximize owner wealth?,The Agency Problem,Agency relationship Principal hires an agent to represent his/her interests Stockholders (principals) hire managers (agents) to run the company Agency problem Conflict of interest between principal and agent Management goals and agency costs,A. Increasing current costs in order to increase the market value of the stockholders equity B. Agreeing to expand the company at the expense of stockholders value C. Refusing to lower selling prices if doing so will reduce the net profits D. Agreeing to pay bonuses based on the book value of the company stock E. Refusing to borrow money when doing so will create losses for the firm,Which one of the following actions by a financial manager creates an agency problem?,1-24,Managing Managers,Managerial compensation Incentives can be used to align management and stockholder interests The incentives need to be structured carefully to make sure that they achieve their goal Corporate control The threat of a takeover may result in better management Other stakeholders,Work the Web Example,The Internet provides a wealth of information about individual companies One excellent site is Click on the web surfer to go to the site, choose a company and see what information you can find!,Financial Markets,Cash flows to and from the firm Primary vs. secondary markets Dealer vs. auction markets Listed vs. over-the-counter securities NYSE NASDAQ,Quick Quiz,What are the three types of financial management decisions