tailieunhanh - Lecture Managerial finance - Chapter 1: Overview of financial management and the financial environment

Chapter 1 - Overview of financial management and the financial environment. After studying this chapter, you will know: Forms of business organization; objective of the firm: maximize wealth; financial securities, markets and institutions. | CHAPTER 1 Overview of Financial Management and the Financial Environment Topics in Chapter Forms of business organization Objective of the firm: Maximize wealth Financial securities, markets and institutions Why is corporate finance important to all managers? Corporate finance provides the skills managers need to: Identify and select the corporate strategies and individual projects that add value to their firm. Forecast the funding requirements of their company, and devise strategies for acquiring those funds. Business Organization from Start-up to a Major Corporation Sole proprietorship Partnership Corporation (More . .) Starting as a Proprietorship Advantages: Ease of formation Subject to few regulations No corporate income taxes Disadvantages: Limited life Unlimited liability Difficult to raise capital to support growth Starting as or Growing into a Partnership A partnership has roughly the same advantages and disadvantages as a sole proprietorship. Becoming a | CHAPTER 1 Overview of Financial Management and the Financial Environment Topics in Chapter Forms of business organization Objective of the firm: Maximize wealth Financial securities, markets and institutions Why is corporate finance important to all managers? Corporate finance provides the skills managers need to: Identify and select the corporate strategies and individual projects that add value to their firm. Forecast the funding requirements of their company, and devise strategies for acquiring those funds. Business Organization from Start-up to a Major Corporation Sole proprietorship Partnership Corporation (More . .) Starting as a Proprietorship Advantages: Ease of formation Subject to few regulations No corporate income taxes Disadvantages: Limited life Unlimited liability Difficult to raise capital to support growth Starting as or Growing into a Partnership A partnership has roughly the same advantages and disadvantages as a sole proprietorship. Becoming a Corporation A corporation is a legal entity separate from its owners and managers. File papers of incorporation with state. Charter Bylaws Advantages and Disadvantages of a Corporation Advantages: Unlimited life Easy transfer of ownership Limited liability Ease of raising capital Disadvantages: Double taxation Cost of set-up and report filing Becoming a Public Corporation and Growing Afterwards Initial Public Offering (IPO) of Stock Raises cash Allows founders and pre-IPO investors to “harvest” some of their wealth Subsequent issues of debt and equity Agency Problems and Corporate Governance Agency problem: managers may act in their own interests and not on behalf of owners (stockholders) Corporate governance is the set of rules that control a company’s behavior towards its directors, managers, employees, shareholders, creditors, customers, competitors, and community. Corporate governance can help control agency problems. What should be management’s primary objective? .

• Tài chính doanh nghiệp
• Managerial finance
• Lecture Managerial finance
• Business organization
• Maximize wealth
• Financial securities
• Free cash flows
• Principles of managerial finance
• Lecture Principles of managerial finance
• Environment of managerial finance
• Financial services
• Career opportunities
• Financial statements
• Financial analysis
• Cash flow
• Financial planning
• Time value of money
• Future calue
• Risk and Return Fundamentals
• Interest rates
• Bond valuation
• Stock valuation
• Equity capital
• International managerial finance
• Capital budgeting cash flow
• Incremental cash flows
• Capital budgeting techniques
• Net present value
• The cost of capital
• Cost of long term debt
• Marginal cost
• Breakeven analysis
• Capital structure
• Operating breakeven point
• Working capital
• Current asset management
• Spontaneous liabilities
• Accounts payable management
• Short term loans
• Financial options
• Corporate finance
• Option terminology
• Dividend policy
• The financial market environment
• Corporate governance
• Managerial behavior
• Stock options
• Capital budgeting cash flows
• Payout policy
• Current liabilities management
• Future value
• Present value
• Rates of return
• Balance sheet
• Personal taxes