单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,Introduction to Financial Management,Chapter 1,0,Introduction to Financial Mana,Chapter Outline,Finance:A Quick Look,Financial Manager,Forms of Business Organization,The Goal of Financial Management,The Agency Problem and Control of the Corporation,Financial Markets and the Corporation,1,Chapter OutlineFinance:A Quic,Basic Areas Of Finance,Corporate finance,Investments,Financial institutions,International finance,2,Basic Areas Of FinanceCorporat,Investments,Work with financial assets such as stocks and bonds,Value of financial assets,risk versus return and asset allocation,Job opportunities,Stockbroker or financial advisor,Portfolio manager,Security analyst,3,InvestmentsWork with financial,Financial Institutions,Companies that specialize in financial matters,Banks,commercial,and,investment,credit unions,savings and loans,Insurance companies,Job opportunities,4,Financial InstitutionsCompanie,Banks in China,Central bank:PBC,ruling rate of interest;treasury;foreign reserve;settlement,Three policy banks:,The export-import bank of China;China development bank;Agriculture development bank of China,Four state-owned banks:,CBC(CCB);BC;ABC;ICBC,Stock-holding banks:,5,Banks in ChinaCentral bank:PB,Former five top investment banks,Goldman Sachs,Morgan Stanley,Lehman Brother,Merrill Lynch,Bear Steam,6,Former five top investment ban,International Finance,This is an extended area of the above areas discussed in the international scope.,It may allow you to work in other countries or at least travel on a regular basis,Need to be familiar with exchange rates and political risk,Need to understand the customs of other countries and speaking a foreign language fluently is also helpful,7,International FinanceThis is a,Financial management,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?,8,Financial managementSome impor,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,9,Financial ManagerFinancial man,Financial Management Decisions,Capital budgeting,(investment decision),What long-term investments or projects should the business take on?,Capital structure,(financing decision),How should we pay for our assets?,Should we use debt or equity?,Working capital management,How do we manage the day-to-day finances of the firm?,Long-term decisions,Short-term decisions,10,Financial Management Decisions,Forms of Organization,Three major forms in the united states,Sole proprietorship,Partnership,General,Limited,Corporation,Limited liability company,“Big four”,11,Forms of OrganizationThree maj,Sole Proprietorship,Advantages,Easiest to 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 interest,12,Sole ProprietorshipAdvantagesD,Partnership,Advantages,Two or more owners,More capital available,Relatively 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 ownership,13,PartnershipAdvantagesDisadvant,Corporation,Advantages,Limited liability,Unlimited life,Separation of 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 personal rate),14,CorporationAdvantagesDisadvant,Goal Of Financial Management,What should be the goal of a corporation?,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?,15,Goal Of Financial ManagementWh,The Agency Problem,Agency relationship,Principal hires an agent to represent their interest,Stockholders(principals)hire managers(agents)to run the company,Agency problem,Conflict of interest between principal and agent,Management goals,Agency cost:direct cost and indirect cost,16,The Agency ProblemAgency relat,Managing Managers,Managerial compensation,Incentives can be used to align management and stockholder interests,The incentives need to be structured carefully to make sure that they achieve their goal,Corporate control,Proxy fight,The threat of a takeover may result in better management.,case,Other stakeholders,17,Managing ManagersManagerial co,Case of takeover,Case 1:hostile takeover,Acqu