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Unformatted text preview: 9/19/2011 1 Lecture 5 Sections 3.1- and 3.2 from Chapter 3: Introduction to Corporate Finance (Corporate Finance by Ross et al.) ActSc 371 – Corporate Finance 1 Instructor: Dr. Lysa Porth 1 Introduction Introduction to Corporate Finance • 3.1 What is Financial Planning? • 3.2 A Financial Planning Model: The Ingredients 2 Financial Planning and Growth Introduction • Chapter 2 discussed the past and present position of the firm. • Chapter 3 outlines the future direction and planning of the company. • Corporate financial planning establishes guidelines for change in the firm. • Identification of the firm’s financial goals • Analysis of the differences between these goals and the current financial status of the firm. • Statement of the actions needed for the firm to achieve its financial goals. • Types of considerations in financial planning that lead to growth, profitability, and shareholder value: • Investment opportunities the firm decides to take. • Amount of debt the firm chooses to take. • Amount of cash the firm decides to pay shareholders. 3 Accounting Statements and Cash Flow 3.1 What is Financial Planning • Financial planning is the method in achieving financial goals....
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This note was uploaded on 02/08/2012 for the course ACTSC 371 taught by Professor Wood during the Fall '08 term at Waterloo.
- Fall '08