Corporate finance
CFA知识点-CorporateFinance公司金融
CFA知识点-Corporate Finance 公司金融Corporate Finance, 中文通常译作公司金融，或者公司理财。
在CFA一级考试中，它占比8%，难度系数在整个一级的学习科目中，为中等偏下，以理解为主。
虽然只有一个session,但包含6个主题，这构成了一个公司理财核心的三件事：钱从哪里来？钱怎么花？钱怎么分？这门课程告诉学员，一个公司，尤其是公司的高管是如何针对公司财务报表，使公司规划出最合适的资本结构，来获得资本的最优收益；在制定资本预算时，如何做出正确的现金流量估计和风险分析，从而作出正确的决定；如何在决定股利政策时，充分了解其中的资讯和意义；以及如何实现公司融资结构与投资结构的最优化并做出未来决策。
所以，这门课具有较强的实用性。
一、 Capital Budgeting 资本预算在众多的投资项目中，企业应当如何去做决策，这需要科学的方法论，由此衍生了资本预算理论的发展。
我们首先要了解的是资本预算的一般过程和资本预算的五大基本原则，以及在对一个项目进行评估的时候，几种主流评估方法：1）NPV (Net Present Value) 净现值法2）IRR (Internal Rate ofReturn) 内部收益率法3）Payback Period 投资回收期法4）Discounted Payback Period 贴现回收期法5）Average Accounting Rate ofReturn 平均会计收益率法6）Profitability Index 盈利性指数。
这其中，NPV和IRR深受大企业和学术研究的欢迎，也是考试的核心。
然而它们也有其各自优势与不足。
就NPV和IRR 的比较来说，（1）理论上看，净现值是最正确的方法，它考虑了所有的现金流情况，多个项目进行投资选择时，应该选择净现值最大的项目；（2）内部收益率法的最大优点就是以百分比的形式计算收益率，容易让人理解，但是存在多重解问题(即一个项目有可能出现两个IRR) 。
《Corporate Finance》公司财务课件 (20)
The current cost of replacing the assets of the firm.
At the time a firm purchases an asset, market value, book value, and replacement value are equal.
Book Value
The sum of par value, capital surplus, and accumulated retained earnings is the common equity of the firm, usually referred to as the book value of the firm.
14-3
Par and No-Par Stock
The stated value on a stock certificate is called the par value.
Par value is an accounting value, not a market value. The total par value (the number of shares multiplied by the par value of each share) is sometimes called the dedicated capital of the corporation.
Some stocks have no par value.
14-4
Authorized vs. Issued Common Stock
The articles of incorporation must state the number of shares of common stock the corporation is authorized to issue. The board of directors, after a vote of the shareholders, may amend the articles of incorporation to increase the number of shares.
《Corporate Finance (公司金融学)》课件 (33)
32.1 Terminology
• Eurocurrency: money deposited in a financial center outside the home country. Eurodollars are dollar deposits held outside the U.S.; Euroyen are yen denominated deposits held outside Japan.
• Foreign bonds: bonds issued in another nation’s capital market by a foreign borrower.
• Gilts: British and Irish government securities. • LIBOR: the London Interbank Offer Rate is the rate
Cross Rates
• Suppose that SDM(0) = .50
– i.e. $1 = 2 DM in the spot market
• and that S¥(0) = 100
– i.e. $1 = ¥100
• What must the DM/¥cross rate be?
since DM $ DM , ¥ ¥$
Sell our £150,000 for ¥at S¥/£(0) = 85 receive ¥12,750,000
罗斯《公司理财CorporateFinance》(第七版)英文课件Ch
If how you slice the pie affects the size of the pie, then the capital struቤተ መጻሕፍቲ ባይዱture decision matters.
1-9
Hypothetical Organization Chart
Board of Directors Chairman of the Board and Chief Executive Officer (CEO)
Shareholders’ Equity
1-5
The Balance-Sheet Model
of the Firm
The Capital Budgeting Decision
Current
Current Assets
Liabilities
Long-Term Debt
Fixed Assets 1 Tangible 2 Intangible
Cost Accounting Data Processing
1-10
The Financial Manager
To create value, the financial manager should: 1. Try to make smart investment decisions. 2. Try to make smart financing decisions.
How much shortterm cash flow does a company need to pay its bills?
Shareholders’ Equity
1-8
Capital Structure
The value of the firm can be thought of as a pie.
公司理财第九版罗斯课后案例答案 Case Solutions Corporate Finance
公司理财第九版罗斯课后案例答案 Case Solutions CorporateFinance1. 案例一：公司资金需求分析问题：一家公司需要资金支持其新项目。
通过分析现金流量，推断该公司是否需要向外部借款或筹集其他资金。
解答：为了确定公司是否需要外部资金，我们需要分析公司的现金流量状况。
首先，我们需要计算公司的净现金流量（净收入加上非现金项目）。
然后，我们需要将净现金流量与项目的投资现金流量进行对比。
假设公司预计在项目开始时投资100万美元，并在项目运营期为5年。
预计该项目每年将产生50万美元的净现金流量。
现在，我们需要进行以下计算：净现金流量 = 年度现金流量 - 年度投资现金流量年度投资现金流量 = 100万美元年度现金流量 = 50万美元净现金流量 = 50万美元 - 100万美元 = -50万美元根据计算结果，公司的净现金流量为负数（即净现金流出），意味着公司每年都会亏损50万美元。
因此，公司需要从外部筹集资金以支持项目的运营。
2. 案例二：公司股权融资问题：一家公司正在考虑通过股权融资来筹集资金。
根据公司的财务数据和资本结构分析，我们需要确定公司最佳的股权融资方案。
解答：为了确定最佳的股权融资方案，我们需要参考公司的财务数据和资本结构分析。
首先，我们需要计算公司的资本结构比例，即股本占总资本的比例。
然后，我们将不同的股权融资方案与资本结构比例进行对比，选择最佳的方案。
假设公司当前的资本结构比例为60%的股本和40%的债务，在当前的资本结构下，公司的加权平均资本成本（WACC）为10%。
现在，我们需要进行以下计算：•方案一：以新股发行筹集1000万美元，并将其用于项目投资。
在这种方案下，公司的资本结构比例将发生变化。
假设公司的股本增加至80%，债务比例减少至20%。
根据资本结构比例的变化，WACC也将发生变化。
新的WACC可以通过以下公式计算得出：新的WACC = (股本比例 * 股本成本) + (债务比例 * 债务成本)假设公司的股本成本为12%，债务成本为8%：新的WACC = (0.8 * 12%) + (0.2 * 8%) = 9.6%•方案二：以新股发行筹集5000万美元，并将其用于项目投资。
Corporate finance专业词汇手册
Chapter 1: introduction to corporate financeCorporate finance（financial management）：公司财务、公司金融、财务管理Capital budgeting：资本预算Capital structure：资本结构Working capital management：流动资本管理Sole proprietorship：独资制、单一业主制Partnership：合伙制Corporation：公司、股份公司Profit maximization ：利润最大化Agency relation：委托代理关系Agency problem：委托代理问题Managerial compensation：管理层报酬Corporate control：公司控制Primary market ：一级市场、发行市场Secondary market：二级市场、交易市场Chapter 2: financial statements, taxes and cash flow Financial statements: 财务报表Cash flow:现金流Accounting value:会计Net income：净利润Depreciation:折旧The balance sheet：资产负债表The income statement 损益表Current asset流动资产Fixed asset固定资产Inventory存货Current liabilities流动负债Bond债券Bondholder债券持有人Shareholder’s equity/common equity/owner’s equity股东权益Balance sheet identity资产负债表等式Net working capital 营运资本Capital spending:资本支出Liquidity：流动性Generally accepted accounting principles：公认会计准则Historical cost：历史成本The income statement：损益表Operating cash flow：经营现金流Earnings per share（EPS）每股收益Earnings before interest and taxes(EBIT):息税前利润Revenue ：收入Chapter 3: working with financial statementsShort-term solvency/liquidity ratios ：短期偿债能力、流动比率Long-term solvency/financial leverage ratios：长期偿债能力、财务杠杆比率Asset management or turnover ratios：资产周转比率Profitability ratios：盈利比率Market value ratios：市场价值比率Quick (acid-test ratio)：速动比率/酸性比率Debt-equity ratio：债务权益比Equity multiplier：权益乘数Long-term debt ratio：长期债务比率Inventory turnover：存货周转率Days’ sales in inventory：存货周转天数Receivables turnover ：应收账款周转率Days’ sales in receivables：应收账款周转天数Return on assets：资产报酬率Return on equity：权益报酬率Price-earning ratio ：市盈率Market-to-book ratio ：市净率Chapter 5 and chapter 6: discounted cash flow valuationtime value of money: 货币时间价值future value：终值compounding/interest on interest：复利/利滚利present value：现值discount rate：贴现率discounted cash flow (DCF) valuation：贴现现金流股价Annuities：年金Perpetuities：永续年金Preferred stock：优先股Common stock:普通股Interest-only loan：纯利息贷款Amortized loan：分期偿还贷款Chapter 7 and chapter 8: interest rates ,bond valuation and stock valuation Bond:债券Bond’s coupons：债券票面利息Face value/ par value：面值Par value bond：平价债券Bond’s time to maturity：债券到期Yield to maturity (YTM)：到期收益率Discount bond：折价债券Premium bond: 溢价债券Interest rate risk：利率风险Semiannual coupons：一年付息两次债券Zero coupon bond：零息债券Floating-rate bond：浮动利率债券Common stock:普通股The dividend growth model：股利增长模型Cumulative voting：累计投票Straight voting：直接选举Chapter 9: net present value and other investment criteria Net present value: 净现值Payback rule：回收期Discounted payback：折现回收期average accounting return：平均会计报酬率Internal rate of return：内部报酬率Mutually exclusive investments：互斥投资项目Profitability index：获利能力指数Chapter 10 and chapter 11:Making capital investment decisions and project analysis Incremental cash flows:增量现金流Sunk costs：沉没成本Opportunity costs：机会成本Side effects：副作用Financing costs：融资成本Scenario analysis：情境分析Sensitivity analysis：敏感性分析Simulation analysis：模拟分析Break-even analysis：盈亏分析Fixed costs：固定成本Variable costs：变动成本Average cost versus marginal cost：平均成本/边际成本Operating leverage：经营杠杆Financial leverage：财务杠杆Chapter 12 and chapter 13: risk and return Risk premium：风险溢价Variability of returns：报酬率的变动Standard deviation：标准差Variance：方差Normal distribution：正态分布Arithmetic averages：算术均值Geometric averages：几何均值Capital market efficiency：资本市场有效性The efficient markets hypothesis (EMH)：有效市场假说Weak form efficient：弱有效Semi strong form efficient：半强有效Strong form efficient：强有效Chapter 12: return, risk and the security market lineExpected portfolio returns：期望组合收益率Portfolio risk：组合风险Security market line：证券市场线Diversification：多元化Portfolio risk：组合风险Systematic risk：系统风险Unsystematic risk：非系统风险Capital asset pricing model (CAPM)Chapter 14: cost of capital Weighted average cost of capital (WACC)Cost of capital：资本成本Cost of equity：股权成本Risk-free rate：无风险收益率Market risk premium：市场风险溢价Flotation costs：发行成本Chapter 15: raising capitalVenture capital:风险资本Private equity：私募股权Public company/listed company：上市公司Go public：上市General cash offer：现金发行Rights offer：认股权发行/配股Initial public offering：首次公开发行Underwriter：承销商Chapter 16 and chapter 17: capital structure policy and dividend policy Bankruptcy costs ：破产成本Static theory of capital structure：资本结构静态权衡理论Pecking-order theory：啄食理论Cash dividend：现金股利Stock dividend ：股票股利Announcement date：宣告日Ex-dividend date：除息日Record date ：登记日Stock repurchase：股票回购Stock split：股票分拆。
《Corporate Finance》公司财务课件 (17)
on which we want to focus:
1. Inflation
2. GDP growth 3. The dollar-euro
spot exchange rate, S($,€)
Our model is:
R =R +m +ε R = R + βI FI + βGDP FGDP + βS FS + ε βI is the inflation beta βGDP is the GDP beta
The beta coefficient, b, tells us teturn to a systematic risk.
In the CAPM, b measured the responsiveness of a
security’s return to a specific risk factor, the return
11-0
CHAPTER
11
An Alternative View of Risk and Return: The APT
11-1
Chapter Outline
11.1 Factor Models: Announcements, Surprises, and Expected Returns
11.2 Risk: Systematic and Unsystematic 11.3 Systematic Risk and Betas 11.4 Portfolios and Factor Models 11.5 Betas and Expected Returns 11.6 The Capital Asset Pricing Model and the
(完整word版)CorporateFinance重点知识整理
(完整word版)CorporateFinance重点知识整理第一章导论1. 公司目标：为所有者创造价值公司价值在于其产生现金流能力。
2。
财务管理的目标：最大化现有股票的每股现值。
3。
公司理财可以看做对一下几个问题进行研究：1。
资本预算:公司应该投资什么样的长期资产。
2. 资本结构：公司如何筹集所需要的资金。
3. 净运营资本管理:如何管理短期经营活动产生的现金流。
4. 公司制度的优点:有限责任,易于转让所有权，永续经营。
缺点：公司税对股东的双重课税。
第二章会计报表与现金流量资产= 负债+ 所有者权益（非现金项目有折旧、递延税款）EBIT（经营性净利润）= 净销售额—产品成本—折旧EBITDA = EBIT + 折旧及摊销现金流量总额CF(A) = 经营性现金流量—资本性支出—净运营资本增加额= CF(B）+ CF（S)经营性现金流量OCF = 息税前利润+ 折旧- 税资本性输出= 固定资产增加额+ 折旧净运营资本= 流动资产- 流动负债第三章财务报表分析与财务模型1. 短期偿债能力指标（流动性指标）流动比率= 流动资产/流动负债（一般情况大于一）速动比率= （流动资产—存货)/流动负债(酸性实验比率）现金比率= 现金/流动负债流动性比率是短期债权人关心的，越高越好；但对公司而言,高流动性比率意味着流动性好，或者现金等短期资产运用效率低下。
对于一家拥有强大借款能力的公司，看似较低的流动性比率可能并非坏的信号2。
长期偿债能力指标（财务杠杆指标)负债比率= (总资产—总权益)/总资产or （长期负债+ 流动负债)/总资产权益乘数= 总资产/总权益= 1 + 负债权益比利息倍数= EBIT/利息现金对利息的保障倍数（Cash coverage radio）= EBITDA/利息3。
资产管理或资金周转指标存货周转率= 产品销售成本/存货存货周转天数= 365天/存货周转率应收账款周转率= （赊）销售额/应收账款总资产周转率= 销售额/总资产= 1/资本密集度4. 盈利性指标销售利润率= 净利润/销售额资产收益率ROA = 净利润/总资产权益收益率ROE = 净利润/总权益(完整word版)CorporateFinance重点知识整理5. 市场价值度量指标市盈率= 每股价格/每股收益EPS 其中EPS = 净利润/发行股票数市值面值比= 每股市场价值/每股账面价值企业价值EV = 公司市值+ 有息负债市值- 现金EV乘数= EV/EBITDA6. 杜邦恒等式ROE = 销售利润率（经营效率）x总资产周转率(资产运用效率）x权益乘数(财杠）ROA = 销售利润率x总资产周转率7. 销售百分比法假设项目随销售额变动而成比例变动，目的在于提出一个生成预测财务报表的快速实用方法。
《corporate finance》罗斯版英文版 Chapter 06书本课后习题及答案
Chapter 061.The changes in a firm's future cash flows that are a direct consequence of accepting a project arecalled _____ cash flows.A. i ncrementalB. s tand-aloneC. o pportunityD. n et present valueE. e rosion2.The annual annuity stream of payments with the same present value as a project's costs is calledthe project's _____ cost.A. i ncrementalB. s unkC. o pportunityD. e rosionE. e quivalent annual3. A cost that has already been paid, or the liability to pay has already been incurred, is a(n):A. s alvage value expense.B. n et working capital expense.C. s unk cost.D. o pportunity cost.E. e rosion cost.4.The most valuable investment given up if an alternative investment is chosen is a(n):A. s alvage value expense.B. n et working capital expense.C. s unk cost.D. o pportunity cost.E. e rosion cost.5. A decrease in a firm’s current cash flows resulting from the implementation of a new project isreferred to as:A. s alvage value expenses.B. n et working capital expenses.C. s unk costs.D. o pportunity costs.E. e rosion costs.6.The depreciation method currently allowed under U.S. tax law governing the accelerated write-offof property under various lifetime classifications is called _____ depreciation.A. F IFOB. M ACRSC. s traight-lineD. s um-of-years digitsE. c urvilinear7.The cash flow tax savings generated as a result of a firm's tax-deductible depreciation expense iscalled the:A. a ftertax depreciation savings.B. d epreciable basis.C. d epreciation tax shield.D. o perating cash flow.E. a ftertax salvage value.8.The cash flow from a project is computed as the:A. n et operating cash flow generated by the project, less any sunk costs and erosion costs.B. s um of the incremental operating cash flow and aftertax salvage value of the project.C. n et income generated by the project, plus the annual depreciation expense.D. s um of the incremental operating cash flow, capital spending, and net working capital cashflows incurred by the project.E. s um of the sunk costs, opportunity costs, and erosion costs of the project.9.Interest rates or rates of return on investments that have been adjusted for the effects of inflationare called _____ rates.A. r ealB. n ominalC. e ffectiveD. s trippedE. c oupon10.The increase you realize in buying power as a result of owning an investment is referred to as the_____ rate of return.A. i nflatedB. r ealizedC. n ominalD. r ealE. r isk-free11.The pro forma income statement for a cost reduction project:A. w ill reflect a reduction in the sales of the firm.B. w ill generally reflect no incremental sales.C. h as to be prepared reflecting the total sales and expenses of the entire firm.D. c annot be prepared due to the lack of any project related sales.E. w ill always reflect a negative project operating cash flow.12.One purpose of identifying all of the incremental cash flows related to a proposed project is to:A. i solate the total sunk costs so they can be evaluated to determine if the project will add valueto the firm.B. e liminate any cost which has previously been incurred so that it can be omitted from theanalysis of the project.C. m ake each project appear as profitable as possible for the firm.D. i nclude both the proposed and the current operations of a firm in the analysis of the project.E. i dentify any and all changes in the cash flows of the firm for the past year so they can beincluded in the analysis.13.Sunk costs include any cost that:A. w ill change if a project is undertaken.B. w ill be incurred if a project is accepted.C. h as previously been incurred and cannot be changed.D. w ill be paid to a third party and cannot be refunded for any reason whatsoever.E. w ill occur if a project is accepted and once incurred, cannot be recouped.14.You spent $500 last week fixing the transmission in your car. Now, the brakes are acting up andyou are trying to decide whether to fix them or trade the car in for a newer model. In analyzing the brake situation, the $500 you spent fixing the transmission is a(n) _____ cost.A. o pportunityB. f ixedC. i ncrementalD. s unkE. r elevant15.Erosion can be explained as the:A. a dditional income generated from the sales of a newly added product.B. l oss of current sales due to a new project being implemented.C. l oss of revenue due to employee theft.D. l oss of revenue due to customer theft.E. l oss of cash due to the expenses required to fix a parking lot after a heavy rain storm.16.Which one of these is an example of erosion that should be included in project analysis?A. T he anticipated loss of current sales when a new product is launched.B. T he expected decline in sales as a new product ages.C. T he reduction in your sales that occurs when a competitor introduces a new product.D. T he sudden loss of sales due to a major employer in your community implementing massivelayoffs.E. T he reduction in sales price that will most likely be required to sell inventory that has aged.17.Which one of the following should be excluded from the analysis of a project?A. e rosion costsB. i ncremental fixed costsC. i ncremental variable costsD. s unk costsE. o pportunity costs18.All of the following are anticipated effects of a proposed project. Which of these should be considered when computing the cash flow for the final year of a project?A. o perating cash flow and salvage valuesB. s alvage values and net working capital recoveryC.operating cash flow, net working capital recovery, salvage valuesD. n et working capital recovery and operating cash flowE.operating cash flow only19.Changes in the net working capital:A. c an affect the cash flows of a project every year of the project's life.B. o nly affect the initial cash flows of a project.C. a re included in project analysis only if they represent cash outflows.D. a re generally excluded from project analysis due to their irrelevance to the total project.E. a ffect the initial and the final cash flows of a project but not the cash flows of the middle years.20.The net working capital of a firm will decrease if there is:A. a decrease in accounts payable.B. a n increase in inventory.C. a decrease in accounts receivable.D. a n increase in the firm's checking account balance.E. a decrease in fixed assets. working capital:A. c an be ignored in project analysis because any expenditure is normally recouped by the end ofthe project.B. r equirements generally, but not always, create a cash inflow at the beginning of a project.C. e xpenditures commonly occur at the end of a project.D. i s frequently affected by the additional sales generated by a new project.E. i s the only expenditure where at least a partial recovery can be made at the end of a project.22.A company which uses the MACRS system of depreciation:A. w ill have equal depreciation costs each year of an asset's life.B. w ill expense the largest percentage of the cost during an asset’s first year of life.C. c an depreciate the cost of land, if it so desires.D. w ill write off the entire cost of an asset over the asset's class life.E. c annot expense any of the cost of a new asset during the first year of the asset's life.23.Champion Toys just purchased some MACRS 5-year property at a cost of $230,000. TheMACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The book value of the asset as of the end of Year 2 can be calculated as:A. $230,000 × (1 −.20 −.32).B. $230,000 × ([1 - (.20 × .32)].B. $230,000 × (1 - .20) × (1 - .32).C. $230,000 / (1 - .20 - .32).D. $230,000 - ($230,000 × .20 × .32).24.Pete’s Garage just purchased some equipment at a cost of $650,000. What is the propermethodology for computing the depreciation expense for Year 3 if the equipment is classified as 5-year property for MACRS? The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively.A. $650,000 ×(1 − .20) ×(1 −.32) ×(1 −.192)B. $650,000 ×(1 − .20) ×(1 −.32)C. $650,000 ×(1 − .20) ×(1 − .32) × .192)D. $650,000 ×(1 −.192)E. $650,000 ×.19225.The book value of an asset is primarily used to compute the:A. a nnual depreciation tax shield.B. a mount of cash received from the sale of an asset.C. a mount of tax saved annually due to the depreciation expense.D. a mount of tax due on the sale of an asset.E. c hange in depreciation needed to reflect the market value of the asset.26.The salvage value of an asset creates an aftertax cash flow in an amount equal to the:A. s ales price of the asset.B. s ales price minus the book value.C. s ales price minus the tax due based on the sales price minus the book value.D. s ales price plus the tax due based on the sales price minus the book value.E. s ales price plus the tax due based on the book value minus the sales price.27.The pretax salvage value of an asset is equal to the:A. b ook value if straight-line depreciation is used.B. b ook value if MACRS depreciation is used.C. m arket value minus the book value.D. b ook value minus the market value.E. m arket value.28.A project's operating cash flow will increase when the:A. d epreciation expense increases.B. s ales projections are lowered.C. i nterest expense is lowered.D. n et working capital requirement increases.E. e arnings before interest and taxes decreases.29.The cash flows of a project should:A. b e computed on a pretax basis.B. i nclude all sunk costs and opportunity costs.C. i nclude all incremental and opportunity costs.D. b e applied to the year when the related expense or income is recognized by GAAP.E. i nclude all financing costs related to new debt acquired to finance the project.30.Assume a firm has no interest expense or extraordinary items. Given this, the operating cash flow can be computed as:A. E BIT - Taxes.B. E BIT × (1 - Tax rate) + Depreciation × Tax rate.C. (Sales - Costs) × (1 - Tax rate).D. E BIT - Depreciation + Taxes.E.Net income + Depreciation.31.The bottom-up approach to computing the operating cash flow applies only when:A. b oth the depreciation expense and the interest expense are equal to zero.B. t he interest expense is equal to zero.C. t he project is a cost-cutting project.D. n o fixed assets are required for the project.E. t axes are ignored and the interest expense is equal to zero.32.The top-down approach to computing the operating cash flow:A. i gnores all noncash items.B. a pplies only if a project produces sales.C. c an only be used if the entire cash flows of a firm are included.D. i s equal to Sales −Costs −Taxes + Depreciation.E. i ncludes the interest expense related to a project.33.For a profitable firm, an increase in which one of the following will increase the operating cashflow?A. e mployee salariesB. o ffice rentC. b uilding maintenanceD. d epreciationE. e quipment rental34.Tax shield refers to a reduction in taxes created by:A. a reduction in sales.B. a n increase in interest expense.C. n oncash expenses.D. a project's incremental expenses.E. o pportunity costs.35.A project which is designed to improve the manufacturing efficiency of a firm but will generate noadditional sales revenue is referred to as a(n) _____ project.A. s unk costB. o pportunityC. c ost-cuttingD. r evenue-cuttingE. r evenue-generating36.Toni's Tools is comparing machines to determine which one to purchase. The machines sell fordiffering prices, have differing operating costs, differing machine lives, and will be replaced when worn out. These machines should be compared using:A. n et present value only.B. b oth net present value and the internal rate of return.C. t heir equivalent annual costs.D. t he depreciation tax shield approach.E. t he replacement parts approach.37.The equivalent annual cost method is useful in determining:A. t he annual operating cost of a machine if the annual maintenance is performed versus whenthe maintenance is not performed as recommended.B. t he tax shield benefits of depreciation given the purchase of new assets for a project.C. o perating cash flows for cost-cutting projects of equal duration.D. w hich one of two machines to acquire given equal machine lives but unequal machine costs.E. w hich one of two machines to purchase when the machines are mutually exclusive, havedifferent machine lives, and will be replaced once they are worn out.38.Marshall's purchased a corner lot five years ago at a cost of $498,000 and then spent $63,500 ongrading and drainage so the lot could be used for storing outdoor inventory. The lot was recently appraised at $610,000. The company now wants to build a new retail store on the site. Thebuilding cost is estimated at $1.1 million. What amount should be used as the initial cash flow for this building project?A. $1,661,500B. $1,100,000C. $1,208,635D. $1,710,000E. $1,498,00039.Samson's purchased a lot four years ago at a cost of $398,000. At that time, the firm spent$289,000 to build a small retail outlet on the site. The most recent appraisal on the propertyplaced a value of $629,000 on the property and building. Samson’s now wants to tear down the original structure and build a new strip mall on the site at an estimated cost of $2.3 million. What amount should be used as the initial cash flow for new project?A. $2,987,000B. $2,242,000C. $2,058,000D. $2,300,000E. $2,929,00040.Jamestown Ltd. currently produces boat sails and is considering expanding its operations toinclude awnings. The expansion would require the use of land the firm purchased three years ago at a cost of $142,000 that is currently valued at $137,500. The expansion could use someequipment that is currently sitting idle if $6,700 of modifications were made to it. The equipment originally cost $139,500 six years ago, has a current book value of $24,700, and a current market value of $39,000. Other capital purchases costing $780,000 will also be required. What is the amount of the initial cash flow for this expansion project?A. $953,400B. $962,300C. $948,900D. $927,800E. $963,20041.The Boat Works currently produces boat sails and is considering expanding its operations toinclude awnings. The expansion would require the use of land the firm purchased three years ago at a cost of $197,000 that is currently valued at $209,500. The expansion could use someequipment that is currently sitting idle if $7,500 of modifications were made to it. The equipment originally cost $387,500 five years ago, has a current book value of $132,700, and a current market value of $139,000. Other capital purchases costing $520,000 will also be required. What is the value of the opportunity costs that should be included in the initial cash flow for theexpansion project?A. $425,000B. $485,000C. $329,700D. $348,500E. $537,20042.Walks Softly sells customized shoes. Currently, it sells 14,800 pairs of shoes annually at anaverage price of $59 a pair. It is considering adding a lower-priced line of shoes that will be priced at $39 a pair. Walks Softly estimates it can sell 6,000 pairs of the lower-priced shoes but will sell 3,500 less pairs of the higher-priced shoes by doing so. What annual sales revenue should be used when evaluating the addition of the lower-priced shoes?A. $27,500B. $24,000C. $31,300D. $789,100E. $900,70043.Foamsoft sells customized boat shoes. Currently, it sells 16,850 pairs of shoes annually at anaverage price of $79 a pair. It is considering adding a lower-priced line of shoes which sell for $49a pair. Foamsoft estimates it can sell 5,000 pairs of the lower-priced shoes but will sell 1,250 lesspairs of the higher-priced shoes by doing so. What is the estimated value of the erosion cost that should be charged to the lower-priced shoe project?A. $138,750B. $146,250C. $98,750D. $52,000E. $123,24044.Sue purchased a house for $89,000, spent $56,000 upgrading it, and currently had it appraised at$212,900. The house is being rented to a family for $1,200 a month, the maintenance expenses average $200 a month, and the property taxes are $4,800 a year. If she sells the house she will incur $20,000 in expenses. She is considering converting the house into professional officespace. What opportunity cost, if any, should she assign to this property if she has been renting it for the past two years? A. $178,500A. $120,000B. $185,000C. A NSD. $192,900D. $232,90045.Jamie's Motor Home Sales currently sells 1,100 Class A motor homes, 2,200 Class C motorhomes, and 2,800 pop-up trailers each year. Jamie is considering adding a mid-range camper and expects that if she does so she can sell 1,500 of them. However, if the new camper is added, Jamie expects that her Class A sales will decline to 850 units while the Class C camper sales decline to 2,000. The sales of pop-ups will not be affected. Class A motor homes sell for anaverage of $140,000 each. Class C homes are priced at $59,500 and the pop-ups sell for $5,000 each. The new mid-range camper will sell for $42,900. What is the erosion cost of adding the mid-range camper?A. $54,250,000B. $46,900,000C. $53,750,000D. $63,150,000E. $78,750,00046.Ernie's Electrical is evaluating a project which will increase sales by $50,000 and costs by$30,000. The project will cost $150,000 and will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 34 percent. What is the operating cash flow for this project?A. $19,200B. $15,000C. $21,300D. $17,900E. $18,30047.Kurt's Cabinets is looking at a project that will require $80,000 in fixed assets and another$20,000 in net working capital. The project is expected to produce sales of $110,000 withassociated costs of $70,000. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35 percent. What is the operating cash flow for this project?A. $7,000B. $13,000C. $27,000D. $33,000E. $40,00048.Peter's Boats has sales of $760,000 and a profit margin of 5 percent. The annual depreciationexpense is $80,000. What is the amount of the operating cash flow if the company has no long-term debt?A. $34,000B. $86,400C. $118,000D. $120,400E. $123,90049.Samoa's Tools has sales of $760,000 and a profit margin of 8 percent. The annual depreciationexpense is $50,000. What is the amount of the operating cash flow if the company has no long-term debt?A. $50,000B. $60,800C. $110,800D. $810,000E. $930,00050.Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,000. Thefirm has a tax rate of 34 percent and a profit margin of 6 percent. The firm has no interestexpense. What is the amount of the operating cash flow?A. $49,384B. $52,616C. $54,980D. $58,340E. $114,34051.The By-Way has sales of $435,000, costs of $254,000, depreciation of $35,000, interest expenseof $22,000, and taxes of $43,400. What is the amount of the operating cash flow?A. $115,600B. $157,900C. $137,600D. $322,100E. $114,34052.Ben's Border Café is considering a project that will produce sales of $16,000 and increase cashexpenses by $10,000. If the project is implemented, taxes will increase from $23,000 to $24,500 and depreciation will increase from $4,000 to $5,500. What is the amount of the operating cash flow using the top-down approach?A. $4,000B. $4,500C. $6,000D. $7,500E. $8,50053.Camille's Café is considering a project that will not produce any sales but will decrease cashexpenses by $12,000. If the project is implemented, taxes will increase from $23,000 to $24,500 and depreciation will increase from $4,000 to $5,500. What is the amount of the operating cash flow using the top-down approach?A. $15,000B. $10,500C. $5,500D. $17,500E. $13,50054.Ronnie's Coffee House is considering a project which will produce sales of $6,000 and increasecash expenses by $2,500. If the project is implemented, taxes will increase by $1,300. The additional depreciation expense will be $1,000. An initial cash outlay of $2,000 is required for net working capital. What is the amount of the operating cash flow using the top-down approach?A. $200B. $1,500C. $2,200D. $3,500E. $4,20055.A project will increase sales by $60,000 and cash expenses by $51,000. The project will cost$40,000 and will be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 35 percent. What is the operating cash flow of the project using the tax shield approach?A. $5,850B. $8,650C. $9,350D. $9,700E. $10,35056.A project will increase sales by $140,000 and cash expenses by $95,000. The project will cost$100,000 and will be depreciated using the straight-line method to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 34 percent. What is the value of the depreciation tax shield?A. $8,500B. $17,000C. $22,500D. $25,000E. $37,75057.Lee's Furniture just purchased $24,000 of fixed assets that are classified as 5-year MACRSproperty. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What is the amount of the depreciation expense for the third year?A. $2,304B. $2,507C. $2,765D. $4,608E. $4,80058.Lew just purchased $67,600 of equipment that is classified as 5-year MACRS property. TheMACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What will the book value of this equipment be at the end of four years should he decide to resell the equipment at that point in time?A. $11,681.28B. $18,280.20C. $17,040.00D. $19,468.80E. $22,672.0059.Northern Enterprises just purchased $1,900 of fixed assets that are classified as 3-year MACRSproperty. The MACRS rates are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent for Years 1 to 4, respectively. What is the amount of the depreciation expense for Year 2?A. $562.93B. $633.27C. $719.67D. $844.36E. $1,477.6360.The Galley purchased some 3-year MACRS property two years ago at a cost of $19,800. TheMACRS rates are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent. The firm no longer uses this property so is selling it today at a price of $13,500. What is the amount of the pretax profit on the sale?A. $11,140.48B. $9,098.46C. $10,500.00D. $8,016.67E. $10,702.4061.Three years ago, you purchased some 5-year MACRS equipment at a cost of $135,000. TheMACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. You sold the equipment today for $82,500. Which of these statements is correct if your tax rate is 34 percent?A. T he tax due on the sale is $14,830.80.B. T he book value today is $40,478.C. T he book value today is $37,320.D. T he taxable amount on the sale is $47,380.E. T he tax refund from the sale is $13,219.20.62.Custom Cars purchased some $39,000 of fixed assets two years ago that are classified as 5-yearMACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent,11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The tax rate is 34 percent. If theassets are sold today for $19,000, what will be the aftertax cash flow from the sale?A. $16,358.88B. $17,909.09C. $18,720.00D. $18,904.80E. $19,000.0063.Winslow Motors purchased $225,000 of MACRS 5-year property. The MACRS rates are 20percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The tax rate is 34 percent. If the firm sells the asset after five years for $10,000, what will be the aftertax cash flow from the sale?A. $8,993.60B. $8,880.20C. $11,006.40D. $7,770.40E. $12,892.0064.A project is expected to create operating cash flows of $26,500 a year for four years. The initialcost of the fixed assets is $62,000. These assets will be worthless at the end of the project. An additional $3,000 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 12 percent?A. $19,208.11B. $14,028.18C. $15,306.09D. $17,396.31E. $21,954.1765.A project will produce operating cash flows of $45,000 a year for four years. During the life of theproject, inventory will be lowered by $30,000 and accounts receivable will increase by $15,000.Accounts payable will decrease by $10,000. The project requires the purchase of equipment at an initial cost of $120,000. The equipment will be depreciated straight-line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating a $25,000 aftertax cash inflow. At the end of the project, net working capital will return to its normal level. What is the net present value of this project given a required return of 15 percent?A. $23,483.48B. $16,117.05C. $24,909.09D. $22,037.86E. $19,876.0266.A project will produce an operating cash flow of $7,300 a year for three years. The initialinvestment for fixed assets will be $11,600, which will be depreciated straight-line to zero over the asset’s 4-year life. The project will require an initial $500 in net working capital plus an additional $500 every year with all net working capital levels restored to their original levels when the project ends. The fixed assets can be sold for an estimated $2,500 at the end of the project, the tax rate is 34 percent, and the required rate of return is 12 percent. What is the net present value of the project?A. $7,532.27B. $9,896.87C. $7,072.72D. $6,353.41E. $8,398.2967.Matty's Place is considering the installation of a new computer system that will cut annualoperating costs by $12,000. The system will cost $42,000 to purchase and install. This system is expected to have a 5-year life and will be depreciated to zero using straight-line depreciation.What is the amount of the earnings before interest and taxes for each year of this project?A. −$20,400B. $5,400C. $3,600D. $12,000E. $8,400。
第一章财务管理导论Corporate Finance Financial Management
3
什么是财务管理?
财务管理解决下述三个问题 :
1.
2.
3.
投资决策：公司应该投资于什么样的长期资产?— —涉及到资本预算 融资决策：公司如何筹资，以支付投资支出所需 要的资金?——涉及到资本结构 营运资本管理：公司应该如何管理它在经营中的 现金流量（ cash flow ）?——涉及到净营运资 本决策
10
融资决策
公司应如何为长期投资筹集所需的长期资金? 这些长期资金将利用股东权益方式还是通过 借入资金方式筹集? 这属于企业的长期筹资决策。 资本结构（ Capital Structure）决策
11
融资决策
公司价值（The value of the firm ）可以被看做一个圆饼. 财务经理的目标是增加圆饼 的大小 资本结构（Capital Structure）决策可以视做 怎样去最佳地分割圆饼 70% 25% 50% 30% 股 Debt Debt权 负债 75% 50% Equity
由于对圆饼的分割（资本结构）将直接影响 到圆饼 大小（公司价值），因此资本结构决 策就非常重要
12
营运资本管理决策
企业应如何管理日常的财务活动，即企业应 如何取得短期资金以及是否要进行赊销?等等 这属于企业由流动资产和流动负债组成的营 运资金管理决策。 净营运资本=流动资产 - 流动负债
净营运资本（Net Working Capital）决策
虽然有限台伙企业的形式在石油天然气租赁和房地产等行业较为普遍但它对于许多其他经营活动并不很适合50有限合伙制企业区别有限合伙人limitedpartnership普通合伙人generalpartnership出资金额大部分95小部分5经营控制权对企业债务的责任仅仅以出资额为限承担有限责任以个人财产承担无限责任专业技术总体上承担无限责任和难以维持持续经营等不利因素使一些规模非常大的企业很难以合伙企业的组织形式进行运作
财务管理CorporateFinance
贷款分摊表（万元）
年 年初本金余额 年支付额 年利息支付额 年本金偿还额 利息税盾 税后现金流量 年末本金余额
1 500.000 98.201 90.000 8.201 22.500 75.701 491.799
2 491.799 98.201 88.524 9.678 22.131 76.070 482.121
3 482.121 98.201 86.782 11.420 21.695 76.506 470.701
4 470.701 98.201 84.726 13.475 21.182 77.020 457.226
5 457.226 98.201 82.301 15.901 20.575 77.626 441.326
9 374.297 98.201 67.374 30.828 16.843 81.358 343.469
10 343.469 98.201 61.824 36.377 15.456 82.745 307.093
11 307.093 98.201 55.277 42.925 13.819 84.382 264.168
NPV
25 50 75 100
结论：C项目IRR不存在
r (%)
公司利润表
销售收入 －成本 －折旧额（D) EBIT －利息费用（R) 应税收入 －纳税额 EAIT
在投资决策时，资产期初投 资额已作为现金流出予以考 虑，为避免重复计算，定义 税前现金流量：
BCF=EBIT+D
利息费用反映了货币的时间 价值，在投资决策时现金流 量的贴现过程已反映了货币 的时间价值，为避免重复计 算，定义总税后现金流量：
30
40
50
《Corporate Finance (公司金融学)》课件 (13)
• Sometimes a firm can find a previously-unsatisfied clientele and issue new securities at favorable prices.
• In the long-run, this value creation is relatively small, however.
past prices
Some Common Misconceptions
• Much of the criticism of the EMH has been based on a misunderstanding of the hypothesis says and does not say.
Stock Price
Sell Sell
Buy Buy
If it were possible to make big money simply by finding “the pattern” in the stock price movements, everyone would do it and the profits would be competed away.
13.1 Can Financing Decisions Create Value? 13.2 A Description of Efficient Capital Markets 13.3 The Different Types of Efficiency 13.4 The Evidence 13.5 Implications for Corporate Finance 13.6 Summary and Conclusions
公司理财罗斯英文原书第九版第一章
1-16
现金流量的时点
年份
1 2 3 4 总计
新产品（方案A）
0 0 0 20000 20000
新产品（方案B）
4000 4000 4000
？
4000 16000
哪个方案更好？
1-17
现金流量的风险
悲观 一般 乐观
欧洲
75000
100000
125000
日本
0
100000
200000
选择日本投资吗？
1-1
Chapter Outline
1.1 What is Corporate Finance?
1.2 The Corporate Firm
1.3 The Importance of Cash Flows
1.4 The Goal of Financial Management 1.5 The Agency Problem and Control of the Corporation 1.6 Regulation
1-13
Voting Rights
Taxation Reinvestment and dividend payout Liability
Double Broad latitude
Limited liability
Continuity
Perpetual life
1.3 The Importance of Cash Flow
The corporate form of business is the standard method for solving the problems encountered in raising large amounts of cash. However, businesses can take other forms.
公司金融英文版教材
公司金融英文版教材Corporate Finance: English Edition TextbookIntroduction:Welcome to the English edition of the Corporate Finance textbook. This comprehensive guide is designed to help you understand the fundamental principles and concepts of corporate finance in a global business environment. Whether you are a student or a professional seeking to enhance your knowledge, this textbook will provide you with the necessary tools to excel in the field of corporate finance.Chapter 1: Introduction to Corporate Finance- Role and importance of corporate finance in business- Financial objectives of a firm and shareholder value maximization- Understanding the key financial decisions and their impact on the firmChapter 2: Financial Statements and Analysis- Understanding the income statement, balance sheet, and cash flow statement- Financial ratio analysis and its interpretation- Evaluating the financial health and performance of a firm Chapter 3: Time Value of Money- Understanding the concept of time value of money- Calculating present value, future value, and annuity payments- Applying time value of money principles in investment decision makingChapter 4: Capital Budgeting- Evaluating investment projects and capital budgeting techniques - Net present value (NPV), internal rate of return (IRR), and profitability index- Assessing risk and uncertainty in investment decisionsChapter 5: Cost of Capital- Determining the cost of debt, equity, and weighted average cost of capital (WACC)- Importance of cost of capital in investment decisions and firm valuation- Estimating the cost of capital using various approaches Chapter 6: Capital Structure- Understanding the capital structure and its impact on firm value - Modigliani-Miller theorem and its implications- Determining the optimal capital structure and the tradeoff between debt and equityChapter 7: Dividend Policy- Role and significance of dividend policy in corporate finance- Dividend theories and factors influencing dividend decisions- Dividend payout ratios, stock repurchases, and dividend reinvestment plansChapter 8: Working Capital Management- Managing short-term assets and liabilities- Cash conversion cycle and its optimization- Credit policies, inventory management, and cash flow forecastingChapter 9: Financial Planning and Forecasting- Importance of financial planning in corporate finance- Developing financial forecasts and budgeting processes- Variance analysis and monitoring financial performance Chapter 10: Corporate Valuation- Different approaches to valuing a firm: discounted cash flow (DCF), relative valuation, and market multiples- Understanding the concept of free cash flow and economic value added (EVA)- Valuation models and their application in mergers and acquisitionsConclusion:This Corporate Finance textbook provides a comprehensive understanding of the key principles and concepts in corporate finance. Whether you are a student aspiring to pursue a career in finance or a professional seeking to enhance your knowledge, this textbook will equip you with the necessary tools to make informed financial decisions and create value for the firm.。
a short introduction to corporate finance -回复
a short introduction to corporate finance -回复什么是公司金融（Corporate Finance）？在商业世界中，公司金融是一个关键领域，涉及了企业如何筹集资金、投资项目、制定财务策略以及管理风险等方面。
公司金融是一个综合性的学科，旨在帮助企业实现其财务目标，同时最大化股东价值。
公司金融的目标是什么？在公司金融领域中，有两个主要的目标：1. 最大化股东价值：公司经营要以股东利益为中心，其目标是通过提供有吸引力的回报率来增加股东的财富。
2. 实现财务目标：公司金融也有一系列财务目标，如实现稳定的现金流、降低财务风险、提高盈利能力等。
公司金融的基本原则是什么？在公司金融领域中，存在一些基本原则，包括：1. 时间价值：金钱在不同时间点有不同的价值，公司金融需要考虑这一点，以便做出有效的投资和融资决策。
2. 资本预算：公司金融需要确定合适的投资项目，以实现盈利能力和增长机会。
3. 资本结构：公司金融需要确定最佳的资本结构，以平衡债务和股权的结构，并最大化股东价值。
4. 风险管理：公司金融需要了解并管理各种风险，包括市场风险、信用风险和操作风险等。
公司金融的主要职能是什么？公司金融具有多个主要职能，包括：1. 资本市场：公司金融经常涉及与投资者、金融机构和债权人等进行资本市场交易和募资活动。
2. 资本预算：公司金融需要评估和管理投资项目，并做出相应的决策，以确保公司的长期发展和增长。
3. 资金管理：公司金融承担着管理公司资金流动和资金需求的责任，以支持公司的日常运营和发展战略。
4. 风险管理：公司金融需要评估和管理各种风险，包括市场风险、信用风险和操作风险等，以确保公司的稳健运作。
公司金融的重要工具是什么？在公司金融领域中，有几个重要的工具被广泛应用于财务决策中，包括：1. 财务报表：公司金融使用财务报表（如资产负债表、利润表和现金流量表）来分析和评估公司的财务状况和业绩。
《Corporate Finance》公司财务课件 (5)
and the fact that callable
bonds have less interest rate
100
risk.
75
Callable bond
50
25
0
4
8
12
16
20
Yield to maturity (%)
20-11
20.4 Bond Ratings
What is rated:
The likelihood that the firm will default. The protection afforded by the loan contract in the event of default.
Features that may change over time
Rating Yield-to-Maturity Market price
20-4
Features of a Hypothetical Bond
Issue amount Issue date Maturity date
Face value Coupon interest Coupon dates Offering price Yield to maturity Call provision
20-7
Protective Covenants
Agreements to protect bondholders Negative covenant: Thou shalt not:
pay dividends beyond specified amount sell more senior debt & amount of new debt is limited refund existing bond issue with new bonds paying lower interest rate buy another company’s bonds Positive covenant: Thou shalt: use proceeds from sale of assets for other assets allow redemption in event of merger or spinoff maintain good condition of assets provide audited financial information
《Corporate Finance》公司财务课件 (19)
• Sometimes a firm can find a previously-unsatisfied clientele and issue new securities at favorable prices.
• In the long-run, this value creation is relatively small, however.
Time
13-11
Semi-rity Prices reflect all publicly available information. Publicly available information includes:
Historical price and volume information Published accounting statements. Information found in annual reports.
13-10
Why Technical Analysis Fails
Investor behavior tends to eliminate any profit opportunity associated with stock price patterns.
Stock Price
Sell Sell
13-12
Strong Form Market Efficiency
Security Prices reflect all information— public and private. Strong form efficiency incorporates weak and semi-strong form efficiency. Strong form efficiency says that anything pertinent to the stock and known to at least one investor is already incorporated into the security’s price.
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Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary g oal of corporate finance is to maximize shareholder value[1]. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.
The discipline can be divided into long-term and short-term decisions and techniques. Capital investment decisions are long-term choices ab out which projects receive investment, whether to finance that investment with equity or debt, and when or whether to pay dividends to shareholders. On the other hand, short term decisions deal with the short-term balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending (such as the terms on credit extended to customers).[ci tati on nee ded]
The terms corporate finance and corporate financier are also associated with investment banking. The typical role of an investment bank is to evaluate the company's financial needs and raise the appropriate type of capital that best fits those needs. Thus, the terms “corporate finance” and “corporate financier” may be associated with transactions in which capital is raised in order to create, develop, grow or acquire businesses.。