1、1-2,GoalsandGovernanceoftheCorporation,Thischapterintroducesthecorporation,itsgoals,andtherolesoffinancialmanagers.,Source:U.S.Census2008SUSBAnnualData,1-3,InvestmentandFinancingDecisions,TheInvestmentDecisionRealAssetsTheFinancingDecisionFinancialAssets,1-4,InvestmentandFinancingDecisions,Arethefol

2、lowingcapitalbudgetingorfinancingdecisions?Appledecidestospend$500milliontodevelopanewiPhone.GEborrows$400millionfrombondinvestors.Microsoftissues100millionsharestobuyasmalltechnologycompany.,1-5,WhatisaCorporation?,Corporation-Abusinessorganizedasaseparatelegalentityownedbystockholders.TypesofCorpo

3、rations:PublicCorporationsPrivateCorporations,1-6,BenefitsoftheCorporation,LimitedliabilityInfinitelifespanEaseofraisingcapital,1-7,DrawbacksoftheCorporation,CorporationsfacetheproblemofdoubletaxationImpropercorporatestructuresmayleadto“AgencyProblems”,1-8,GoalsofTheCorporation,Shareholderswantwealt

4、hmaximizationWfitmaximization:Pitfall:Profitsfromwhichperiod?Pitfall:Cuttingdividendstoincreasecashreserves,1-9,TheEthicsofMaximizingValue,Doesvaluemaximizationjustifyunethicalbehavior?Recentexamples:EnronWorldComBernardMadoff,1-10,AgencyProblem,Domanagersreallymaximizevalue?A

5、gencyProblemsManagersareagentsforstockholders,butthemanagersmayactintheirowninterestsratherthanmaximizingvalueShareholdersvs.Stakeholders,1-11,AgencyProblem,DifferentInformationStockpricesvs.returnsDividendPolicyFinancingDecisions,DifferentObjectivesManagersvs.shareholdersTopmanagersvs.lowermanagers

6、Stockholdersvs.banksandlenders,1-12,AgencyProblemSolutions,CompensationplansBoardofDirectorsBlockholders,1-13,AgencyProblemSolutions,TakeoversSpecialistMonitoringLegalandRegulatoryRequirements,1-14,4A.Cashreinvestedinthefirm4B.Cashreturnedtoinvestors,RoleoftheFinancialManager,Cashraisedfrominvestors(how?)CashinvestedinfirmCashgeneratedbyoperations,1-15,TheFi