国际财务管理课件1.ppt

1、ChapterMcGraw-Hill/IrwinCopyright 2006 by The McGraw-Hill Companies,Inc.All rights reserved.1Introduction To Corporate Finance1-1Key Concepts and Skills Know the basic types of financial management decisions and the role of the financial manager Know the financial implications of the different forms

2、 of business organization Know the goal of financial management Understand the conflicts of interest that can arise between owners and managers Understand the various types of financial markets1-2Chapter OutlineCorporate Finance and the Financial ManagerForms of Business OrganizationThe Goal of Fina

3、ncial ManagementThe Agency Problem and Control of the CorporationFinancial Markets and the Corporation1-3Corporate 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?H

4、ow will we manage the everyday financial activities of the firm?1-4Financial 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 expendi

5、tures and financial planning Controller oversees taxes,cost accounting,financial accounting and data processing1-5Financial Management Decisions Capital budgeting What long-term investments or projects should the business take on?Capital structure How should we pay for our assets?Should we use debt

6、or equity?Working capital management How do we manage the day-to-day finances of the firm?1-6Forms of Business Organization Three major forms in the United States Sole proprietorship Partnership General Limited Corporation S-Corp Limited liability company1-7Sole Proprietorship Advantages Easiest to

7、start Least regulated Single owner keeps all the profits Taxed once as personal income Disadvantages Limited to life of owner Equity capital limited to owners personal wealth Unlimited liability Difficult to sell ownership interest1-8Partnership Advantages Two or more owners More capital available R

8、elatively easy to start Income taxed once as personal income Disadvantages Unlimited liability General partnership Limited partnership Partnership dissolves when one partner dies or wishes to sell Difficult to transfer ownership1-9Corporation Advantages Limited liability Unlimited life Separation of

9、 ownership and management Transfer of ownership is easy Easier to raise capital Disadvantages Separation of ownership and management Double taxation(income taxed at the corporate rate and then dividends taxed at the personal rate)1-10Goal Of Financial Management What should be the goal of a corporat

10、ion?Maximize profit?Minimize costs?Maximize market share?Maximize the current value of the companys stock?Does this mean we should do anything and everything to maximize owner wealth?1-11The Agency Problem Agency relationship Principal hires an agent to represent his/her interest Stockholders(princi

11、pals)hire managers(agents)to run the company Agency problem Conflict of interest between principal and agent Management goals and agency costs1-12Managing Managers Managerial compensation Incentives can be used to align management and stockholder interests The incentives need to be structured carefu

12、lly to make sure that they achieve their goal Corporate control The threat of a takeover may result in better management Other stakeholders1-13Work the Web Example The Internet provides a wealth of information about individual companies One excellent site is Click on the web surfer to go to the site

13、,choose a company and see what information you can find!1-14Financial Markets Cash flows to the firm Primary vs.secondary markets Dealer vs.auction markets Listed vs.over-the-counter securities NYSE NASDAQ1-15Quick Quiz What are the three types of financial management decisions and what questions ar

14、e they designed to answer?What are the three major forms of business organization?What is the goal of financial management?What are agency problems and why do they exist within a corporation?What is the difference between a primary market and a secondary market?ChapterMcGraw-Hill/IrwinCopyright 2006 by The McGraw-Hill Companies,Inc.All rights reserved.1End of Chapter