chp 1 - Introduction To Corporate Finance Chapter One...

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Introduction To Corporate Finance Chapter One
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Chapter Outline Corporate Finance and the Financial Manager Forms of Business Organization The Goal of Financial Management The Agency Problem and Control of the Corporation Financial Markets and the Corporation
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Corporate Finance Some important questions that are answered using finance What long-term investments should the firm take on? Where will we get the long-term financing to pay for the investment? How will we manage the everyday financial activities of the firm?
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Financial Management Decisions What long-term investments or projects should the business take on? Capital Budgeting How should we pay for our assets? Should we use debt or equity? Capital Structure – what's the right mix of debt and equity to finance a project How do we manage the day-to-day finances of the firm? Working Capital Management ( wont cover)
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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 (CFO) Treasurer – oversees cash management, credit management, capital expenditures and financial planning Controller – oversees taxes, cost accounting, financial accounting and data processing
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Forms of Business Organization Three major forms in the United States 1. Sole proprietorship- 1 owner
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chp 1 - Introduction To Corporate Finance Chapter One...

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