1、非常感激能和大家共同學(xué)習(xí),謝 群 2013年9月9日,CORPORATE FINANCE,謝群（Mars) International Business Faculty Email: Phone:188 1865 1852,Contents,There are eight parts, sixteen chapters. In the part one, we considers the goal of the corporation, the corporate form of organization,and the role of the financial manager. In th

2、e part two, we briefly reviews key accouting concepts and succinctly discusses cash flow versus accounting income, market value versus book value, and taxes.,In the part three, we study the value of future cash flows and use the financial calculators and spreadsheets. In the part four, we study the

3、two kind of securities: stocks and bonds. We should how to value them ? In the part five, it contains new, up-to-date survey results on corporate capital budgeting practices.,In the part six, it give us a feel for typical rates of return on financial assets and also a historical perspective on risk.

4、 In the part seven, we study the cost of capital, leverage and capital structure, dividends and dividend policy, and raising capital. In the part eight, it presents a general survey of short-term financial management, which is useful when time does not permit a more in-depth treatment.,Chapter 1 Int

5、roduction to financial management,PART ONE Overview of financial management,1-7,Chapter Outline,1.1Finance: A Quick Look 1.2Business Finance and The Financial Manager 1.3Forms of Business Organization 1.4The Goal of Financial Management 1.5The Agency Problem and Control of the Corporation 1.6Financi

6、al Markets and the Corporation,RWJ website,1-8,Key Concepts and Skills,Have a good understanding of: The basic types of financial management decisions and the role of the financial manager The goal of financial management The financial implications of the different forms of business organization The

7、 conflicts of interest that can arise between owners and managers,1.1 Finance: A Quick Look,The four basic areas,1.Corporate finance 2.Investment 3.Financial institutions 4.International finance,1-11,Investments,Work with financial assets such as stocks and bonds Value of financial assets, risk vers

8、us return, and asset allocation Job opportunities Stockbroker or financial advisor Portfolio manager Security analyst,1-12,Financial Institutions,Companies that specialize in financial matters Banks commercial and investment, credit unions, savings and loans Insurance companies Brokerage firms Job o

9、pportunities,1-13,International Finance,An area of specialization within each of the areas discussed so far May allow you to work in other countries or at least travel on a regular basis Need to be familiar with exchange rates and political risk Need to understand the customs of other countries; spe

10、aking a foreign language fluently is also helpful,1-14,Basic Areas Of Finance,1-15,Why Study Finance?,Marketing Budgets, marketing research, marketing financial products Accounting Dual accounting and finance function, preparation of financial statements Management Strategic thinking, job performanc

11、e, profitability Personal finance Budgeting, retirement planning, college planning, day-to-day cash flow issues,1.2 BUSINESS FINACE AND THE FINANCIAL MANAGER,1-16,1-17,Business Finance,Some important questions that are answered using finance What long-term investments should the firm take on? Where

12、will we get the long-term financing to pay for the investments? How will we manage the everyday financial activities of the firm?,1-18,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 (C

13、FO) Treasurer oversees cash management, credit management, capital expenditures, and financial planning Controller oversees taxes, cost accounting, financial accounting, and data processing,1-19,Corporate Organization ChartFigure 1.1,1-20,Financial Management Decisions,Capital budgeting What long-te

14、rm 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?,Return to Quick Quiz,1.3 FORMS OF BUSINESS ORGANIZATION,1-21,1-22,Forms of Busine

15、ss Organization,Three major forms in the United States Sole proprietorship Partnership General Limited Corporation S-Corp Limited liability company,Return to Quick Quiz,1-23,Sole Proprietorship,Advantages Easiest to start Least regulated Single owner keeps all of the profits Taxed once as personal i

16、ncome,Disadvantages Limited to life of owner Equity capital limited to owners personal wealth Unlimited liability Difficult to sell ownership interest,Business owned by one person,1-24,Partnership,Advantages Two or more owners More capital available Relatively easy to start Income taxed once as pers

17、onal income,Disadvantages Unlimited liability General partnership Limited partnership Partnership dissolves when one partner dies or wishes to sell Difficult to transfer ownership,Business owned by two or more persons,1-25,Corporation,Advantages Limited liability Unlimited life Separation of ownersh

18、ip and management Transfer of ownership is easy Easier to raise capital,Disadvantages Separation of ownership and management (agency problem) Double taxation (income taxed at the corporate rate and then dividends taxed at personal rate, while dividends paid are not tax deductible),A legal “person” d

19、istinct from owners and a resident of a state,1-26,International Corporate Forms,Joint stock companies Public limited companies Limited liability companies All share: Public ownership Limited liability,1.4 THE GOAL OF FINANCIAL MANAGEMENT,1-27,1-28,Goal Of Financial Management,What should be the goa

20、l of a corporation? Maximize profit? Minimize costs? Maximize market share? Maximize the current value per share of the companys existing stock Maximize the market value of the existing owners equity,Return to Quick Quiz,1-29,Goal Of Financial management,Does this mean we should do anything and ever

21、ything to maximize owner wealth? Outsourcing? Off-shoring? Enron? Corporate support of charities?,1-30,Sarbanes-Oxley Act (SarBox, 2002),Driven by corporate scandals Enron, Tyco, WorldCom, Adelphia Intended to strengthen protection against accounting fraud and financial malpractice Compliance very c

22、ostly Firms driven to: Go public outside the U.S. Go private (“go dark”),1.5 THE AGENCY PROBLEM AND CONTROL OF THE CORPARATION,1-31,1-32,The Agency Problem,Agency relationship Principal hires an agent to represent its interests Stockholders (principals) hire managers (agents) to run the company Agen

23、cy problem Conflict of interest between principal and agent Management goals and agency costs,Return to Quick Quiz,1-33,Do Managers Act in the Shareholders Interests?,Managerial compensation Incentives can be used to align management and stockholder interests Incentives need to be carefully structur

24、ed to insure that they achieve their goal Corporate control Threat of a takeover may result in better management Other stakeholders,1-34,Example: Work the Web,The Internet provides a wealth of information about individual companies “” is an excellent site Example: Southwest Airlines (LUV) Harley- Davidson (HOG) Starwood Hotels & Resorts (HOT) American Express (AXP),1.6 FINANCIAL MARKETS AND THE CORPARATION,1-35,1-36,Cash Flows Between the Firm and the Financial MarketsFigure 1.2,1-37,Financial Markets,Cash flows to the firm Primary vs. secondary markets Dealer vs. auction markets