博迪教学课件01

Chapter1:

FinancialEconomicsObjectiveToDefineFinanceTheValueofFinanceIntroductiontothePlayers1Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallChapter1Contents1.1DefiningFinance1.2WhyStudyFinance1.3FinancialDecisionsofHouseholds1.4FinancialDecisionsofFirms1.5FormsofBusinessOrganization1.6SeparationofOwnershipandManagement1.7TheGoalofManagement1.8MarketDiscipline:Takeovers1.9TheRoleoftheFinancialSpecialistinaCorporation2Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallIntroductionI’msavingforretirement.ShouldIuseabankCD,mutualfund,directstockmarketinvestment?Iwantthatnewcar.ShouldIusesavedcash,lease,borrow?I’mthinkingaboutstartinganewbusinesswillitrewardmeadequately?Thecompanyislookingtoexpandintotelecommunications.howshouldyouadvisetheCFO?ALatinAmericancountryhasaskedformajorprojectfinancingshouldmyorganizationprovidethefunds?3Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHall1.1DefiningFinanceFinanceisthestudyofhowpeopleallocatescarceresourcesovertimecostsandbenefitsaredistributedovertimebuttheactualtimingandsizeoffuturecashflowsareoftenknownonlyprobabilisticallyUnderstandingfinancehelpsyouevaluatetheseuncertaincashflows4Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallDefiningFinanceWhenimplementingdecisions,peoplemakeuseoftheFinancialSystem

definedasthesetofmarketsandotherinstitutionsusedforfinancialcontractingandexchangeofassetsandrisks5Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallDefiningFinanceFinancialtheoryconsistsof:thesetofconceptsthathelptoorganizeone’sthinkingabouthowtoallocateresourcesovertimethesetofquantitativemodelsusedtohelpevaluatealternatives,makedecisions,andimplementthemTheseconceptsandmodelsapplyatalllevelsandscalesofdecisionmaking6Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallDefiningFinanceAbasictenetoffinanceisthattheexistenceofeconomicorganizations(e.g.firmsandgovernments)facilitatethesatisfactionofpeople’sconsumptionpreferences7Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHall1.2WhyStudyFinance?TomanageyourpersonalresourcesTodealwiththeworldofbusinessTopursueinterestingandrewardingcareeropportunitiesTomakeinformedpublicchoicesasacitizenTheintellectualchallenge8Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHall1.3FinancialDecisionsofHouseholdsConsumptionandsavingdecisionsInvestmentDecisionsFinancingDecisionsRisk-managementdecisions9Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallImportantTermsAssetsPersonalinvesting&AssetallocationLiability,DebtNetWorth=Assets-LiabilitiesExogenousandendogenouselements10Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHall1.4FinancialDecisionsofFirmsBusinessFirmsentitieswhoseprimaryfunctionistoproducegoodsandservicestheyvarywidelyinsizefrompart-timebusinessesrunfromaspareroom,togiantcorporations(e.g.MitsubishiorGeneralMotors)withhundredsofthousandsofemployees,andanevenlargerownership11Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallFinancialDecisionsofFirmsStrategicplansspecifythebusinessthefirmisinstrategicplansmaychangeradicallyovertimethefirm’sbusinessmaybedefinedintermsofagroupofproducts,technologiesorcustomers12Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallFinancialDecisionsofFirmsTheCapitalBudgetingProcessThepreparationofaplanforacquiringfactories,machinery,researchlaboratories,showrooms,warehouses,andhumanassetstoimplementthestrategicplanThebasicunitofanalysisistheinvestmentproject.Investmentprojectsareidentified,triaged,andimplementedinthecapitalbudgetingprocess13Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallFinancialDecisionsofFirmsTheFinancingProcessOnceanewsetofapprovedprojectshasbeenidentified,itmustbefinancedwithretainedearnings,stock,bonds,etceteraCapitalstructureistheamountofthefirm’smarketvalueallocatedtoeachcategoryofissuedsecurities.ItdeterminesownershipandrisklevelofthefirmsfuturecashflowsCapitalstructure’sunitofanalysisisthefirmasawhole(notaninvestmentproject)14Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallFinancialDecisionsofFirmsThecapitalstructurealsodetermineswhocontrolsthefirmunderdifferentcontingenciesCommonstockholdersusuallydeterminethemembershipoftheboardofdirectorsPreferredstockholdersusuallygainsomecontrolifpreferreddividendsarenotpaidBondholdercovenantsrestrictdecisionsthatcouldadverselyaffectbondvalues15Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallFinancialDecisionsofFirmsWorkingCapitalallfirms(includinghighlyprofitableones)thatdonotpaysufficientattentiontoworkingcapitalmanagementmaybeseriouslydamagedbytheresultinglossofinvestorandcreditorconfidencedelayedininvestmentschedulessub-optimaltemporaryfinanceunscheduledsaleofthefirmsassets16Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHall1.5FormsofBusinessOperationSoleProprietorshipafirmownedbyanindividualorfamilytheassetsandliabilitiesarethepersonalassetsandliabilitiesoftheproprietorunlimitedliabilitylowadministrativecosts17Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallFormsofBusinessOperationPartnershipAfirmwith³2ownerssharingtheequity.Apartnershipagreementusuallystipulateshowdecisionsandprofits(losses)aresharedGeneralpartners³1(unlimitedliability)Limitedpartners³0(don’tmanagebusiness)Changesinownershipinvolvedissolvingtheoldpartnershipandforminganewone18Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallFormsofBusinessOperationCorporationalegalentity,distinctfromitsownershipmayownproperty,borrow,sue,besued,andenterintolegalcontractsnotdissolvedwhensharesaretransferredshareholderselectdirectors,whoappointmanagementpayscorporatetaxes,resultingindoubletaxationofowner(notsub-chapterSCorp.)limitedliability(corporateveilmaybelifted)19Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHall1.6SeparationofOwnershipandManagementOwnersdelegatemanagementifagencyconflictshaveacost-effectiveresolutionprofessionalmanagershavespecializedskillsefficienciesofscalediversificationofowner’sportfoliosavingsinthecostofinformationgatheringlearningcurve/goingconcernissues20Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHall1.7GoalofManagementManagementrule:MaximizethewealthofcurrentshareholdersRuledependsonlyuponproductiontechnology,marketinterestrates,marketriskpremiums,andsecuritypricesAlternativerulesstatedintermsof“profitmaximization”arefraughtwithunresolvedissues,andarebetteravoided21Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHall1.8MarketDiscipline:Takeovers

Theownershipofacorporationgenerallyiswidelydispersed&indirect(mutualfunds)lacksinternalcommunicationchannelsisoftenill-informedaboutmismanagementisn’twillingtopayfor&organizechangecan’twrestlecontrolfromaunitedself-perpetuatingboardofdirectorsjustsellstockwhendissatisfied,contributingtodownwardsharepricepressures22Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallMarketDiscipline:Takeovers

Inacompetitivemarket,amechanismthatreducesmismanagementisthecorporatetake-over.Example:acustomer,supplier,competitor,orprofessionalraidergainsspecializedknowledgeofthemismanagementtheraiderpurchasesacontrollinginterestinthestock,andinstallsnewmanagementThevalueofthestockrises,andtheraiderliquidatesownershipataprofit23Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHall1.9TheRolesofFinancialSpecialistinaCorporationFinancialexecutive--apersonwithauthorityinthefollowingfunctions:24Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallChiefExecutiveOfficerTheCEOistypicallythepresidentreportstotheboardofdirectors25Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallChiefFinancialOfficerTheCFOhasresponsibilityforallfinancialfunctionsinthecompany26Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallTreasurerThetreasurerisresponsibleformanagingthefinancialactivitiesofthefirmandforworkingcapitalrelationshipswithinvestingcommunitymanagingcurrencyandinterestraterisksmanagingthetaxdepartment27Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallVPFinancialPlanningTheVPFinancialPlanninganalyzesmajorcapitalexpendituresnewbusinessventuresexitingexistingbusinessesmergers,acquisitions,andspin-offs28Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallComptroller/ControllerTheComptrolleroversees:financial,managerial&costaccountingauditingpreparesinternalreportscomparingplannedwithactualcostspreparesfinancialstatementsusedbyshareholders,creditors,andregulators29Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallFinancialFunctionsinaCorporation:PlanningProvisionofCapitalAdministrationofFundsAccountingandControlProtectionofAssetsTaxAdministrationInvestorRelationsEvaluationandConsultingManagementInformationSystems30Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallPlanninglongandshort-termfinancialplanningbudgetingforcapitalexpendituresbudgetingforoperationssalesforecastingperformanceevaluationpricingpolicieseconomicappraisalsanalysisofacquisitionsanddivestments31Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallProvisionofCapitalestablishmentandexecutionofprogramsfortheprovisionofcapitalrequiredbythebusiness32Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallAdministrationofFundsmanagementofcashmaintenanceofbankingarrangementsreceipt,custody,anddisbursementofthecompany’smoniesandsecuritiescreditandcollectionmanagementmanagementofpensionfundsmanagementofinvestmentscustodialresponsibilities33Copyright©2009PearsonEducation,Inc.

PublishingasPrenticeHallAccountingandControlestablishmentofaccountingpoliciesdevelopment&reportingofaccountingdatacoststandardsinternalauditingsystemsandprocedures(accounting)governmentreportingreporting&interpretingoperationsresultscomparingperformancewithoperatingplansandstandards34Copyright©2009PearsonEducation,Inc.

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