FundamentalsofCorporateFinanceSixthEditionRichardA.BrealeyStewartC.MyersAlanJ.MarcusSlidesbyMatthewWillChapter1McGrawHill/IrwinCopyright?2009byTheMcGraw-HillCompanies,Inc.Allrightsreserved

Introduction

FundamentalsofCorporateFinance

SchoolofManagement,SCUFN(SouthCentralUniversityLectureteacher:ZhouYunlan周運(yùn)蘭

FundamentalsofFinancialManagement

writtenbyBrighamHouston

TenthEdition

FundamentalsofFinancialManagement10e

EugeneF.BrighamJoelF.Houston財(cái)務(wù)管理基礎(chǔ)普通高等教育“十一五”國(guó)家級(jí)規(guī)劃教材高等學(xué)校金融學(xué)類英文版教材沈洪濤改編；沈藝峰審校高等教育出版社出版2005年1月第一次出版

CourseobjectiveTheObjectiveofthiscourseistointroducethestudenttoboththetheoryandthepracticeofcorporatefinanceandinvestment.ForstudentsintendingtodofurtherworkinFinance,thiscoursewilllaythebasicfoundationofconceptsusedinadvancedcourses.

CoursecontentItbeginswithdiscussionoffinancialobjectives,includinghowmanagersandinvestorsusefinancialstatementstodeterminehowwellafirmismeetingitsobjectives.Italsodiscusshowincentivecompensation,alongwiththethreatoftakeovers,canbeusedtomotivatemanagersandhowthatcanbenefitbothstockholdersandsocietyatlarge.Italsodescribesearlyonthefinancialenvironment,thetrade-offbetweenriskandreturn,andthetimevalueofmoney,thanbuildonthesebasicconceptstoexplainhowstockandbondpricesaredetermined.Withthisbackground,subsequentchaptersexplainthefinancialtoolsandtechniquesthatareusedbymanagerstohelpmaximizefirm’svalues.Includearecapitalbudgetingtechniques,proceduresfordeterminingtheoptimalcapitalstructure,andvariousaspectsofworkingcapitalmanagement.Thefinalsectionofbookconsistoffivechaptersthatdealwithfinancialforecasting,derivativesandriskmanagement,multinationalfinancialmanagement,hybridfinancingvehicles,andmergers(財(cái)務(wù)預(yù)測(cè)，衍生工具和風(fēng)險(xiǎn)管理，跨國(guó)財(cái)務(wù)管理，混合融資工具以及合并)。.

EvaluationPerformanceinClasses15%ormore

Assignments 15%FinalExamination70%orless 100%

WhatisFinancialManagement?Financialmanagementisimportantinalltypesofbusinesses,includingbanksandotherfinancialinstitutions,aswellasindustrialandretailfirms.Corporatefinanceattemptstofindtheanswerstothefollowingquestions:Whatinvestmentsshouldthefirmtakeon?THEINVESTMENTDECISIONHowcancashberaisedfortherequiredinvestments?THEFINANCINGDECISIONShouldexistingassetsbemanaged?ASSETMANAGEMENTDECISION

InvestmentDecisionsWhatistheoptimalfirmsize?Whatspecificassetsshouldbeacquired?Whatassets(ifany)shouldbereducedoreliminated?Mostimportantofthethreedecisions.FinancingDecisionsWhatisthebesttypeoffinancing?Whatisthebestfinancingmix?Whatisthebestdividendpolicy?Howwillthefundsbephysicallyacquired?Determinehowtheassets(LHSofbalancesheet)willbefinanced(RHSofbalancesheet).Chapter1GoalsandGovernanceoftheFirmTopicsCovered：InvestmentandFinancingDecisionsWhatisaCorporation?WhoIsTheFinancialManager?GoalsoftheCorporationCareersinFinance

AnoverviewofFinancialManagementChapterObjectives:UnderstandwhatarethethreemaininterrelatedareasofFinance,andthefinancialstaff’sresponsibility.Knowwhatarethethreeprincipalformsofbusinessorganization?Whataretheadvantagesanddisadvantagesofeach?Outlinethepossiblegoalsofafirm(corporation)andtheproblemsassociatedwitheach.Explaintheagencyproblemandthewaystomotivatemanagerstoactinthebestinterestsofstockholders.FINANCEINTHEORGANIZATIONAL

STRUCTUREOFTHEFIRMOrganizationalstructuresvaryfromfirmtofirm,butthefellowFigure1-1presentsafairlytypicalpictureoftheroleoffinancewithinacorporation.企業(yè)、公司:（firmbusinessenterprisecompanycorporationventure）OrganizationoftheFinancialManagementFunction:Figure1-1

WhoisTheFinancialManager?ChiefFinancialOfficerTreasurerControllerFinancialManagerThetopfinancialmanagerwithinafirmisusuallytheChiefFinancialOfficer(CFO)

Treasurer–overseescashmanagement,creditmanagement,capitalexpendituresandfinancialplanning(planningitscapitalstructure,forsellingstocksandbondstoraisecapital,foroverseeingthecorporatepensionplan,andformanagingrisk)Controller–overseestaxes,costaccounting,financialaccountinganddataprocessingTheRoleofTheFinancialManagerCapitalBudgetingDecisionDecisiontoinvestintangibleorintangibleassets.…alsocalledtheInvestmentDecisionTheRoleofTheFinancialManager“CapitalBudgeting”TangibleAssetsToyotaPlants@$3billionnewdebtIntangibleAssetsGillette’sFusionRazor@$200millionTheRoleofTheFinancialManagerFinancingDecisionTheformandamountoffinancingofafirm’sinvestments.CapitalStructureThemixoflongtermdebtandequityfinancing.FinancialManagerFirm'soperationsInvestors(1)Cashraisedfrominvestors(1)(2)Cashinvestedinfirm(2)(3)Cashgeneratedbyoperations(3)(4a)Cashreinvested(4a)(4b)Cashreturnedtoinvestors(4b)TheRoleofTheFinancialManagerRealassetsInvestmentassetsTheRoleofTheFinancialManagerRealAssets(實(shí)物資產(chǎn))Assetsusedtoproducegoodsandservices.FinancialAssets(財(cái)務(wù)資產(chǎn)）Financialclaimstotheincomegeneratedbythefirm’srealassets.WhatisaCorporation?CorporationAbusinessorganizedasaseparatelegalentityownedbystockholders.TypesofCorporationsPublicCompaniesPrivateCorporationsLimitedLiabilityCorporations(LLC)OrganizingaBusinessTypesofBusinessOrganizationsSoleProprietorshipsPartnershipsCorporationsLimitedLiabilityOptionsLimitedLiabilityPartnershipsLimitedLiabilityCorporationsProfessionalCorporationsOrganizingaBusinessCorporateStructureSoleProprietorshipsCorporationsPartnershipsLimitedLiabilityCorporatetaxonprofits+PersonaltaxondividendsUnlimitedLiabilityPersonaltaxonprofitsWhoisTheFinancialManager?ChiefFinancialOfficerTreasurerControllerWhoisTheFinancialManager?ChiefFinancialOfficer(CFO)Overseesthetreasurerandcontrollerandsetsoverallfinancialstrategy.Treasurer（司庫(kù)、財(cái)務(wù)主管）Responsibleforfinancing,cashmanagement,andrelationshipswithbanksandotherfinancialinstitutions.Controller（控制人、總計(jì)長(zhǎng)、管理者）Responsibleforbudgeting,accounting,andtaxes.PossibleGoalsofcorporateTheobjectiveofdecisionmakingincorporatefinance(publicly-tradedfirm)is:(a)tomaximizeearnings(b)tomaximizecashflows(c)tomaximizethesizeofthefirm(d)tomaximizemarketshare(e)tomaximizefirmvalue(f)tomaximizestockprices(g)tomaximizefirm’sallstakeholdersinterests.(h)ShareholderWealthMaximizationProfitMaximizationMaximizingafirm’searningsaftertaxes.Problems:

Couldincreasecurrentprofitswhileharmingfirm(e.g.,defermaintenance,issuecommonstocktobuyT-bills,etc.).Ignorestheinvestedcapitalwhichgaintheearnings.Ignoreschangesintherisklevelofthefirm.

Earnings

perShareMaximizationDoesnotspecifytimingordurationofexpectedreturns.Ignoreschangesintherisklevelofthefirm.Callsforazeropayoutdividendpolicy.Maximizingearningsaftertaxesdividedbysharesoutstanding.ProblemsStrengthsofShareholderWealthMaximizationThepriceofafirm’sstockdependsonthecashflowspaidtoshareholders,thetimingofthecashflows,andtheirriskiness.Thelevelandriskinessofcashflowsareaffectedbythefinancialenvironmentaswellasbyinvestment,financing,anddividendpolicydecisionsmadebyfinancialmanagers.Takesaccountof:currentandfutureprofitsandEPS;

thetiming,duration,andriskofprofitsandEPS;dividendpolicy;andallotherrelevantfactors.

TheGoalsoftheCorporation

Theprimarygoalofmanagementshouldbetomaximizestockholders’wealth,andthismeansmaximizingthefirm’sstock

priceinsomedegree.Note,though,actionsthatmaximizestockpricesalsoincreasesocialwelfare.Thus,shareprice

servesasabarometerforbusinessperformancePrimaryGoalsTheprimarygoalformanagementdecisions;considerstheriskandtimingassociatedwithexpectedearningspershareinordertomaximizethepriceofthefirm’scommonstock.AndvaluecreationoccurswhenwemaximizethesharepriceforcurrentshareholdersThegoalmustbeassociatedwithincreasingprofitabilityandreducingrisk,soitisnecessarytofindagoalthatcanencompassbothprofitabilityandrisk.SocialResponsibilityTheconceptthatbusinessesshouldbeactivelyconcernedwiththewelfareofsocietyatlarge.Wealthmaximizationdoesnotprecludethefirmfrombeingsociallyresponsible.Thecriteriaforsocialresponsibilityarenotclearlydefined.Assumeweviewthefirmasproducingbothprivateandsocialgoods.Then

shareholderwealthmaximization

remainstheappropriategoalingoverningthefirm.GoalsofTheCorporationShareholdersdesirewealthmaximizationDomanagersmaximizeshareholderwealth?Mangershavemanyconstituencies“stakeholders”（選民區(qū)的利益相關(guān)者）“AgencyProblems”representtheconflictofinterestbetweenmanagementandownersGoalsofTheCorporationEthics&ManagementObjectivesDoesvaluemaximizationjustifyunethicalbehavior?EnronexampleWorldComexamplePutnamexampleAgencyProblemDifferenceinInformationStockpricesandreturnsIssuesofsharesandothersecuritiesDividendsFinancingDifferentObjectivesManagersvs.stockholdersTopmgmtvs.operatingmgmtS