Chapter 1

Chapter 1 - Introduction Introduction to Corporate Finance...

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troduction to Corporate Finance Introduction to Corporate Finance -- Chapter 1 Instructor: Yihui Wang Introduction to Corporate Finance
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What is Corporate Finance? • Corporate finance is mainly about the acquisition and distribution of the resources a company need for its operation now and in the future. The distribution of resources: capital budgeting The acquisition of resources: capital structure • The top financial manager within a firm is usually the Chief Financial Officer (CFO) Introduction to Corporate Finance 2
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Financial Manager and Cash Flows Firm’s Financial Financial vestment inancing Operating Manager Market Investment Decision Financing Decision overnment Government Introduction to Corporate Finance 3
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Goal Of Financial Management •W hat should be the goal of Financial Management? Maximize profit? i i i t ? Minimize costs? Maximize market share? aximize stock price? Maximize stock price? Maximizing current market value of the company’s stock is the only plausible financial objective. Current market value incorporates present value of all current and future cash flows, adjusted for timing and risk Introduction to Corporate Finance 4
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Alternative Forms of Business Organization Sole Proprietorship Partnership Corporation Introduction to Corporate Finance 5
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Sole Proprietorship • Sole Proprietorship is a business owned by a single individual.
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This note was uploaded on 02/16/2011 for the course ACCT 233 taught by Professor 123 during the Spring '11 term at CUHK.

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Chapter 1 - Introduction Introduction to Corporate Finance...

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