Introduction of corporate finance

Topics: Generally Accepted Accounting Principles, Balance sheet, Asset Pages: 23 (1555 words) Published: December 3, 2013
Lecture 1

(Chapter 1)
Introduction to Corporate Finance

McGraw-Hill/Irwin

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

会计循环
会计循环过程
原始凭证

记账凭证

记账

过账结算 试算平衡 报表编制
总账

分类账
明细账

基本原则:账证相符、账账相符、账表相符、账实相符 1-1

财务管理的基本框架
企业规模
理财环境 目标利润 筹资渠道
财务策略 财务预算 筹资方式

财务目标

短期投资 股利理论 总体分析
营运资金管理 股利政策 指标分析
成本控制 股利方式 综合分析

资金预测 资金筹集

资金投放 收益分配 财务分析

时间价值 资金成本
财务关系 风险分析 资金结构

实业投资 税务政策 分析方法
证券投资 发展规模 分析报告
财务关系

财务管理制度

1-2

财会管理的构架
方法
核心
• 财务会计
核算
利润
• 管理会计 决策控制 成本
• 财务管理 资金运作 现金

目的
披露信息
管理效益
价值增值

1-3

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 various
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 regulations that firms
face
Understand the information provided by
financial statements
1-4

Chapter Outline
1.1 What is Corporate Finance?
1.2 The Corporate Firm
1.3 The Importance of Cash Flows
1.4 The Goal of Financial Management
1.5 The Agency Problem and Control of the
Corporation
1.6 Regulation
2.1 The balance sheet
2.2 The income statement
1-5

1.1 What Is Corporate Finance?
Corporate Finance addresses the following
three questions:
1. What long-term investments should the firm
choose?
2. How should the firm raise funds for the
selected investments?
3. How should short-term assets be managed and
financed?

1-6

Balance Sheet Model of the Firm
Total Value of Assets:

Current Assets

Total Firm Value to Investors:
Current
Liabilities
Long-Term
Debt

Fixed Assets
1 Tangible
2 Intangible

Shareholders’
Equity
1-7

The Capital Budgeting Decision
Current
Liabilities

Current Assets

Long-Term
Debt

Fixed Assets

1 Tangible
2 Intangible

What long-term
investments
should the firm
choose?

Shareholders’
Equity

1-8

The Capital Structure Decision
Current Assets

How should the
firm raise funds
for the selected
Fixed Assets
investments?
1 Tangible
2 Intangible

Current
Liabilities
Long-Term
Debt

Shareholders’
Equity

1-9

Short-Term Asset Management
Current Assets

Fixed Assets

1 Tangible
2 Intangible

Current
Liabilities
Net
Working
Capital

How should
short-term assets
be managed and
financed?

Long-Term
Debt

Shareholders’
Equity

1-10

The Financial Manager
The Financial Manager’s primary goal is to
increase the value of the firm by:
1. Selecting value creating projects
2. Making smart financing decisions

1-11

Hypothetical Organization Chart
Board of Directors

Chairman of the Board and
Chief Executive Officer (CEO)
President and Chief
Operating Officer (COO)

Vice President and
Chief Financial Officer (CFO)

Treasurer

Controller

Cash Manager

Credit Manager

Tax Manager

Cost Accounting

Capital Expenditures

Financial Planning

Financial Accounting

Data Processing
1-12

1.2 The Corporate Firm
• The corporate form of business is the standard
method for solving the problems encountered in
raising large amounts of cash.
• However, businesses can take other forms.

1-13

Forms of Business Organization
• The Sole Proprietorship
• The Partnership
▫ General Partnership
▫ Limited Partnership

• The Corporation

1-14

A Comparison
Corporation

Partnership

Liquidity

Shares can be easily
exchanged

Subject to substantial
restrictions

Voting Rights

Usually each share gets one
vote

General Partner is in charge;
limited partners may have
some voting rights

Taxation

Double

Partners pay taxes on
distributions

Reinvestment and dividend
payout

Broad latitude

All net cash flow is
distributed to partners

Liability

Limited liability

General partners may have
unlimited...
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