slides01 - 1. Introduction to Corporate Finance Two...

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Unformatted text preview: 1. Introduction to Corporate Finance Two branches of finance Corporate Investments 2 Figure organization chart 3 Issues addressed in corporate finance Capital budgeting: What long-term investments should the firm take on? Capital structure: Where will we get the long-term financing to pay for the investment? Working capital management: How will we manage the ev- eryday financial activities of the firm? 4 WWW A few good sources of info: http://www.investopedia.com http://www.bloomberg.com http://finance.yahoo.com http://www.ft.com http://www.wsj.com http://123jump.com www.investor.reuters.com www.wikipedia.org 5 Forms of business organization Sole proprietorship Partnership Corporation 6 Sole proprietorship Advantages: Easiest to start Least regulated Single owner keeps all the profits Profits taxed once (as personal income) Agency problem less severe Disadvantages: Unlimited liability Limited to life of owner Equity capital limited to owners personal wealth (but debt financing is possible) Difficult to sell ownership interest 7 Partnership...
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This note was uploaded on 03/31/2008 for the course FNCE 3010 taught by Professor Donchez,ro during the Fall '07 term at Colorado.

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slides01 - 1. Introduction to Corporate Finance Two...

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