公司财务-学习的英文chap1课件

1、Chapter 1Introduction to Financial Management0Chapter 1Introduction to FinanChapter OutlineFinance: A Quick LookBusiness Finance and The Financial ManagerForms of Business OrganizationThe Goal of Financial ManagementThe Agency Problem and Control of the CorporationFinancial Markets and the Corporati

2、on1Chapter OutlineFinance: A QuicKey Concepts and SkillsKnow the basic types of financial management decisions and the role of the financial managerKnow the financial implications of the different forms of business organizationKnow the goal of financial managementUnderstand the conflicts of interest

3、 that can arise between owners and managers2Key Concepts and SkillsKnow thBasic Areas Of FinanceCorporate financeInvestmentsFinancial institutionsInternational financeABCACBD3Basic Areas Of FinanceCorporatInvestmentsWork with financial assets such as stocks and bondsValue of financial assets, risk v

4、ersus return, and asset allocationJob opportunitiesStockbroker or financial advisorPortfolio managerSecurity analyst4InvestmentsWork with financialFinancial InstitutionsCompanies that specialize in financial mattersBanks commercial and investment, credit unions, savings and loansInsurance companiesB

5、rokerage firmsJob opportunities5Financial InstitutionsCompanieInternational FinanceThis is an area of specialization within each of the areas discussed so farIt may allow you to work in other countries or at least travel on a regular basisNeed to be familiar with exchange rates and political riskNee

6、d to understand the customs of other countries; speaking a foreign language fluently is also helpful6International FinanceThis is aWhy Study Finance?MarketingBudgets, marketing research, marketing financial productsAccountingDual accounting and finance function, preparation of financial statementsMa

7、nagementStrategic thinking, job performance, profitabilityPersonal financeBudgeting, retirement planning, college planning, day-to-day cash flow issues7Why Study Finance?Marketing7Business FinanceSome important questions that are answered using financeWhat long-term investments should the firm take

8、on?Where will we get the long-term financing to pay for the investments?How will we manage the everyday financial activities of the firm?8Business FinanceSome importantFinancial Management DecisionsCapital budgetingWhat long-term investments or projects should the business take on?Capital structureH

9、ow should we pay for our assets?Should we use debt or equity?Working capital managementHow do we manage the day-to-day finances of the firm?9Financial Management DecisionsFinancial Management DecisionsCompany (2019 Revenue)Capital BudgetingFinancingBoeing ($52.5b)$7b to design, build, test and sell

10、787 Dreamliner aircraftNegotiate with suppliers to help to finance the Dreamliner project. A Japanese supplier, who will build the wing and fuselage, are raising and investing more than $1.5bBank of America ($48.9b)Acquired Fleet Boston Financial for $49bIssued about 600 million new shares to financ

11、e the acquisitionBP ($285b)Invested $ 600m to develop oil fields offshore in the Gulf of MexicoAnnounced plans to return surplus cash flow to shareholders through share repurchaseLVMH ($17.1b)Acquired Glenmorangie PLC, a producer of scotch malt whiskiesIssued a 7-year bond in July 2019, raising the

12、euro equivalent of $812 mPfizer ($52.5b)$7.7b on research and testing of new medicinesFinance the research and testing with reinvested cash flow generated by sales of pharmaceutical productsToyota ($164b)Building an $800m automobile plant in San Antonio, TexasTotal borrowings increased by $2.9b, mai

13、nly due to issuance of short-term debt in USWal-Mart ($285b)Plan for 2019 call for up to 530 new retail stores in US and 165 stores in other countriesIssued $1883m long-term debt, maturing in 2036 and paying interest at 5.25% per year10Financial Management DecisionsBalance Sheet Model of the FirmCur

14、rent AssetsFixed Assets1 Tangible 2 IntangibleTotal Value of Assets:Shareholders EquityCurrent LiabilitiesLong-Term DebtTotal Firm Value to Investors:11Balance Sheet Model of the FirThe Capital Budgeting DecisionWhat long-term investments should the firm choose?Current AssetsFixed Assets1 Tangible 2

15、 IntangibleTotal Value of Assets:Shareholders EquityCurrent LiabilitiesLong-Term DebtTotal Firm Value to Investors:12The Capital Budgeting DecisionThe Capital Structure DecisionCurrent AssetsFixed Assets1 Tangible 2 IntangibleTotal Value of Assets:How should the firm raise funds for the selected inv

16、estments?Shareholders EquityCurrent LiabilitiesLong-Term DebtTotal Firm Value to Investors:13The Capital Structure DecisionShort-Term Asset ManagementHow should short-term assets be managed and financed?Current AssetsFixed Assets1 Tangible 2 IntangibleTotal Value of Assets:Shareholders EquityCurrent

17、 LiabilitiesLong-Term DebtTotal Firm Value to Investors:Net Working Capital14Short-Term Asset ManagementHowFinancial ManagerFinancial managers try to answer some, or all, of these questionsThe top financial manager within a firm is usually the Chief Financial Officer (CFO)Treasurer oversees cash man

18、agement, credit management, capital expenditures, and financial planningController oversees taxes, cost accounting, financial accounting, and data processing15Financial ManagerFinancial manOrganizing and Managing a CorporationStockholdersBoard of DirectorsPresident, Vice-President, and Other Officer

19、sEmployees of the CorporationUltimate control.Stockholders usually meet once a year.Selected by a vote of the stockholders.Overall responsibility for managing the company.16Organizing and Managing a CorpHypothetical Organization ChartChairman of the Board and Chief Executive Officer (CEO)Board of Di

20、rectorsPresident and Chief Operating Officer (COO)Vice President and Chief Financial Officer (CFO)TreasurerControllerCash ManagerCapital ExpendituresCredit ManagerFinancial PlanningTax ManagerFinancial AccountingCost Accounting Data Processing 17Hypothetical Organization CharForms of Business Organi

21、zationSole ProprietorshipPartnershipCorporation18Forms of Business OrganizationForms of Business OrganizationThree major forms in the United StatesSole proprietorshipPartnershipGeneralLimitedCorporationLimited liability company19Forms of Business OrganizationSole ProprietorshipAdvantagesEasiest to s

22、tartLeast regulatedSingle owner keeps all of the profitsTaxed once as personal incomeDisadvantagesLimited to life of ownerEquity capital limited to owners personal wealthUnlimited liabilityDifficult to sell ownership interestSole Proprietorship20Sole ProprietorshipAdvantagesDPartnershipAdvantagesTwo

23、 or more ownersMore capital availableRelatively easy to startIncome taxed once as personal incomeDisadvantagesUnlimited liabilityGeneral partnershipLimited partnershipPartnership dissolves when one partner dies or wishes to sellDifficult to transfer ownershipPartnership21PartnershipAdvantagesDisadva

24、ntCorporationAdvantagesLimited liabilityUnlimited lifeSeparation of ownership and managementTransfer of ownership is easyEasier to raise capitalDisadvantagesSeparation of ownership and management (agency problem)Double taxation (income taxed at the corporate rate and then dividends taxed at personal

25、 rate, while dividends paid are not tax deductible)Corporation22CorporationAdvantagesDisadvantA ComparisonCorporationPartnershipLiquidityShares can be easily exchangedSubject to substantial restrictionsVoting RightsUsually each share gets one voteGeneral Partner is in charge; limited partners may ha

26、ve some voting rightsTaxationDoublePartners pay taxes on distributionsReinvestment and dividend payoutBroad latitudeAll net cash flow is distributed to partnersLiabilityLimited liabilityGeneral partners may have unlimited liability; limited partners enjoy limited liabilityContinuity Perpetual lifeLi

27、mited life23A ComparisonCorporationPartneGoal of Financial ManagementWhat should be the goal of a corporation?Maximize profit?Minimize costs?Maximize market share?Maximize the current value of the companys stock?24Goal of Financial ManagementWhGoal of Financial ManagementGoal: Maximize the current v

28、alue per share of existing stockMore general goal: Maximize the market value of the existing owners equity25Goal of Financial ManagementGoGoal of Financial ManagementDoes this mean we should do anything and everything to maximize owner wealth?Sarbanes-Oxley Act26Goal of Financial ManagementDoThe Age

29、ncy ProblemAgency relationshipPrincipal hires an agent to represent its interestsStockholders (principals) hire managers (agents) to run the companyAgency problemConflict of interest between principal and agentManagement goals and agency costsI hire you to run my companyOK!27The Agency ProblemAgency

30、 relatManagerial GoalsManagerial goals may be different from shareholder goalsExpensive perquisitesSurvivalIndependenceIncreased growth and size are not necessarily equivalent to increased shareholder wealth28Managerial GoalsManagerial goaManaging ManagersManagerial compensationIncentives can be use

31、d to align management and stockholder interestsThe incentives need to be structured carefully to make sure that they achieve their goalCorporate controlThe threat of a takeover may result in better managementOther stakeholders29Managing ManagersManagerial coOptions are given to key employees to moti

32、vate them to:focus on company performance,take a long-run perspective, andremain with the company.Stock Options30Options are given to key emploExample: Work the WebThe Internet provides a wealth of information about individual companiesOne excellent site is finance.yahooClick on the Web surfer to go to the site, choose a company and see what information you can find!31Example: Work the WebThe InterFinancial MarketsCash flows to the firmUltimatel