精品课程《财务管理基础》英文课件ch01
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CHAPTER1 An Overview of Financial Management (《财务管理基础》PPT课件)
Some actions may cause an increase in earnings, yet cause the stock price to decrease (and vice versa).
1-11
AGENCY RELATIONSHIPS
An agency relationship exists whenever a principal hires an agent to act on their behalf.
Is stock price maximization good or bad for society?
Should firms behave ethically?
1-10
IS STOCK PRICE MAXIMIZATION THE SAME AS PROFIT MAXIMIZATION?
Forecasting and planning Investment and financing decisions Coordination and control Transactions in the financial markets Managing risk
1-3
ROLE OF FINANCE IN A TYPICAL BUSINESS ORGANIZATION
1-8
CORPORATION
Advantages
Unlimited life Easy transfer of ownership Limited liability Ease of raising capital
Disadvantages
Double taxation Cost of set-up and report filing
1-11
AGENCY RELATIONSHIPS
An agency relationship exists whenever a principal hires an agent to act on their behalf.
Is stock price maximization good or bad for society?
Should firms behave ethically?
1-10
IS STOCK PRICE MAXIMIZATION THE SAME AS PROFIT MAXIMIZATION?
Forecasting and planning Investment and financing decisions Coordination and control Transactions in the financial markets Managing risk
1-3
ROLE OF FINANCE IN A TYPICAL BUSINESS ORGANIZATION
1-8
CORPORATION
Advantages
Unlimited life Easy transfer of ownership Limited liability Ease of raising capital
Disadvantages
Double taxation Cost of set-up and report filing
财务管理英文课件1
3.
4. 5. 6. 7.
II. What is Business finance? 1. Career Opportunities in Finance
• Money and capital markets • Investments • Business Finance or Financial management
3. Responsibility of the Financial Staff
• Maximize stock value by:
– Forecasting and planning – Investment and financing decisions – Coordination and control – Transactions in the financial markets – Managing risk – Dividend policy & distribution decisions
Useful Websites：
• • • • • • • • • • • • • •
Course Outline
1.Course Pre-requisite: Financial Accounting or equivalent. 2.Course objectives:
This course is designed for the student, not only the finance major, but also accounting major. We will cover a lot of ground. We will begin with a general overview and then go into more detail on several concepts, financial instruments, and techniques used in financial decision making. The chief objectives of the course are: 1. To introduce you to the world of finance. Anyone involved with the management of a business needs to have at least some minimal knowledge of business finance. 2. To introduce you to basic financial concepts such as the time value of money, asset valuation, and risk and return. My hope is that by the end of the class you will have a basic grasp of finance principles and that you go beyond just memorizing a number of facts and formulas. Doing so will enable you to better understand current events in Finance and will provide a solid framework for any subsequent courses you may take in Finance. Hopefully, by the end of the semester you will want to take additional classes in Finance! The structure of this class makes your individual study and preparation outside class extremely important. The lecture material will focus on the major points introduced in the text. Reading the assigned chapters and having some familiarity with them before class will greatly assist your understanding of the lecture. After the lecture, you should study your notes and work relevant problems that I will assign you.
精品课程《财务管理基础》英文课件ch(7)PPT课件
3-8
Simple Interest (FV)
What is the Future Value (FV) of the deposit?
FV = P0 + SI = $1,000 + $140 = $1,140
Future Value is the value at some future time of a present amount of money, or a series of payments, evaluated at a given interest rate.
7. Use interest factor tables to find an unknown interest rate or growth rate when the number of time periods and future and present values are known.
3-3
The Interest Rate
Which would you prefer -- $10,000 today or $10,000 in 5 years?
Obviously, $10,000 today. You already recognize that there is
TIME VALUE TO MONEY!!
3. Describe how the interest rate can be used to adjust the value of cash flows – both forward and backward – to a single point in time.
4. Calculate both the future and present value of: (a) an amount invested today; (b) a stream of equal cash flows (an annuity); and (c) a stream of mixed cash flows.
Simple Interest (FV)
What is the Future Value (FV) of the deposit?
FV = P0 + SI = $1,000 + $140 = $1,140
Future Value is the value at some future time of a present amount of money, or a series of payments, evaluated at a given interest rate.
7. Use interest factor tables to find an unknown interest rate or growth rate when the number of time periods and future and present values are known.
3-3
The Interest Rate
Which would you prefer -- $10,000 today or $10,000 in 5 years?
Obviously, $10,000 today. You already recognize that there is
TIME VALUE TO MONEY!!
3. Describe how the interest rate can be used to adjust the value of cash flows – both forward and backward – to a single point in time.
4. Calculate both the future and present value of: (a) an amount invested today; (b) a stream of equal cash flows (an annuity); and (c) a stream of mixed cash flows.
企业财务管理基础知识(ppt 19页)(英文版)
Dr. Chak-Tong Chau
Fulbright Guest Lecture Materials
4
Usefulness of Information
How do we know, a priori, that information is “useful”?
Consider the following payoff structure (known to all):
Y1
{S1}
Y2
{S2, S3}
Y3
{S4, S5, S6}
This new information system partitions the matrix as follows
Signal: Y1
Y2
Y3
S1
S2
S3
S4
S5
S6
e1=10 2
3
3
4
5
5
e2= 5 2
2
3
4
4
5
Question: Are the signals, Y1,,Y2 and Y3 useful?
Consider this new contingent contract (corresponding payoffs):
Prob. e1=0 e2= 5
e3= 6
S1 0.25
0 14,722 (20,000) 14,722 (20,000)
S2 0.25
0 14,722 (20,000) 20,544 (30,000)
S1
S2
S3
S4
Expected Expected
Prob. 0.25
0.25
0.25
财务管理英文课件 (1)
Copyright © 2001 by Harcourt, Inc.
All rights reserved.
1-1
Career Opportunities in Finance
nMoney and capital markets n Investments nFinancial management
nIn the long run, such actions will raise the cost of debt and ultimately lower stock price.
Copyright © 2001 by Harcourt, Inc.
All rights reserved.
1 - 13
10 Well-Known Corporations, 1998
Percentage of
Revenue Originated
Company
Overseas
3M
51.7
Chase Manhattan 27.8
Coca-Cola
62.3Biblioteka Exxon80.1
General Electric 23.9
General Motors 30.8
markets nManaging risk
Copyright © 2001 by Harcourt, Inc.
All rights reserved.
1-5
Alternative Forms of Business Organization
nSole proprietorship n Partnership n Corporation
1-0
CHAPTER 1
An Overview of Financial Management
CH01Fundamentals of Financial Management(财务管理,英文版)
Copyright © 2001 by Harcourt, Inc. All rights reserved.
1 - 12
Shareholders versus Managers Managers are naturally inclined to act in their own best interests. But the following factors affect managerial behavior: Managerial compensation plans Direct intervention by shareholders The threat of firing The threat of takeover
ISBN 0-03-031478-X
Copyright © 2001 by Harcourt, Inc. All rights reserved.
1-1
CHAPTER 1
An Overview of Financial Management
Career opportunities
Issues of the new millennium Forms of business organization Goals of the corporation Agency relationships
Factors that Affect Stock Price
Projected cash flows to shareholders
Timing of the cash flow stream
Riskiness of the cash flows
Copyright © 2001 by Harcourt, Inc.
1 - 12
Shareholders versus Managers Managers are naturally inclined to act in their own best interests. But the following factors affect managerial behavior: Managerial compensation plans Direct intervention by shareholders The threat of firing The threat of takeover
ISBN 0-03-031478-X
Copyright © 2001 by Harcourt, Inc. All rights reserved.
1-1
CHAPTER 1
An Overview of Financial Management
Career opportunities
Issues of the new millennium Forms of business organization Goals of the corporation Agency relationships
Factors that Affect Stock Price
Projected cash flows to shareholders
Timing of the cash flow stream
Riskiness of the cash flows
Copyright © 2001 by Harcourt, Inc.
财务管理英文Cha课件
Copyright 2001 Prentice-Hall, Inc.
12
Income Statement Analysis
Non Cash Items
➢ Depreciation is the most apparent. No firm ever writes a check for “depreciation”.
➢ Another noncash item is deferred taxes, which does not represent a cash flow.
Copyright 2001 Prentice-Hall, Inc.
13
Income Statement Analysis
Time and Costs
Copyright 2001 Prentice-Hall, Inc.
9
Income Statement Example
Sales
Costs Depreciation EBIT Interest Taxable Income Taxes Net Income Dividends Addition to R/E
Total Value of Assets
Total Value of Liabilities and Shareholders’ Equity
Hale Waihona Puke Copyright 2001 Prentice-Hall, Inc.
5
Balance Sheet Analysis
When analyzing a balance sheet, the financial manager should be aware of three concerns:
《财务管理基础》英文ppt课件
Limited Partnership -- limited partners have liability limited to their capital contribution (investors only). At least one general partner is required and all general partners have unlimited liability.
2. Understand how to calculate a corporation's taxable income and how to determine the corporate tax rate - both average and marginal.
3. Understand various methods of depreciation. 4. Understand why acquiring assets through the use of debt
individual form
Disadvantages
• Unlimited liability • Hard to raise
additional capital • Transfer of
ownership difficulties
2-6
The Business Environment
Partnership -- A business form in which two or more individuals act as owners.
• Easy transfer of
• More diffiablish
• Unlimited life
• More expensive to
2. Understand how to calculate a corporation's taxable income and how to determine the corporate tax rate - both average and marginal.
3. Understand various methods of depreciation. 4. Understand why acquiring assets through the use of debt
individual form
Disadvantages
• Unlimited liability • Hard to raise
additional capital • Transfer of
ownership difficulties
2-6
The Business Environment
Partnership -- A business form in which two or more individuals act as owners.
• Easy transfer of
• More diffiablish
• Unlimited life
• More expensive to
财务管理英文版.ppt
210
Total Equity $1,139
Total Liab/Equitya,b $2,169
a. Note, Assets = Liabilities + Equity.
b. What BW owed and ownership position.
c. Owed to suppliers for goods and services.
d. Unpaid wages, salaries, etc.
e. Debts payable < 1 year. f. Debts payable > 1 year. g. Original investment. h. Earnings reinvested.
Basket Wonders’ Income Statement
Financial Statement Analysis
Financial Statements A Possible Framework for Analysis Balance Sheet Ratios Income Statement and Income
Statement/Balance Sheet Ratios Trend Analysis Common-Size and Index Analysis
Ⅰ.Primary Types of Financial Statements
Balance Sheet
A summary of a firm’s financial position on a given date that shows total assets = total liabilities + owners’ equity. Income Statement
财务管理基础课件：Operating and Financial Leverage
150,000 (24,000 shares at $6.25)
$200,000
5-22
Impact of Financing Plan on Earnings per Share
Table 5-5
5-23
Financing Plans and Earnings per Share
5-24
Degree of Financial Leverage
5-19
Nonlinear Break-Even Analysis
• Assumption of exact linear relation does not hold good in reality
5-20
Financial Leverage
• Reflects the amount of debt used in the capital structure of the firm
80,000 ($2.00 - $0.80) - $60,000
=
80,000 ($1.20)
=
$96,000 ;
80,000 ($1.20) - $60,000
$96,000 - $60,000
DOL = 2.7
5-18
Limitations of Analysis
• Assumption of existence of constant or linear function for revenues and costs as volume changes
DFL = Percent change in EPS Percent change in EBIT
• For the purpose of computation, it can be restated as:
$200,000
5-22
Impact of Financing Plan on Earnings per Share
Table 5-5
5-23
Financing Plans and Earnings per Share
5-24
Degree of Financial Leverage
5-19
Nonlinear Break-Even Analysis
• Assumption of exact linear relation does not hold good in reality
5-20
Financial Leverage
• Reflects the amount of debt used in the capital structure of the firm
80,000 ($2.00 - $0.80) - $60,000
=
80,000 ($1.20)
=
$96,000 ;
80,000 ($1.20) - $60,000
$96,000 - $60,000
DOL = 2.7
5-18
Limitations of Analysis
• Assumption of existence of constant or linear function for revenues and costs as volume changes
DFL = Percent change in EPS Percent change in EBIT
• For the purpose of computation, it can be restated as:
财务管理ppt英文课件chapter-1.ppt
Part I: Part II: Part III: Part IV: Part V: Part VI:
Part VII:
Introduction to Financial Management Valuation Tools of Financial Analysis and Planning Working Capital Management Investment in Capital Assets The Cost of Capital , Capital Structure, and Dividend Policy Intermediate and Long-term Financing
Copyright 2001 Prentice-Hall, Inc.
12
Fundamentals of Financial Management, 11/e by Van Horne and Wachowicz.
Slides prepared by Wu Xiaolan
Profit Maximization
3
Fundamentals of Financial Management, 11/e by Van Horne and Wachowicz.
Slides prepared by Wu Xiaolan
Chapter 1
The Role of Financial Management
Copyright 2001 Prentice-Hall, Inc.
5
Fundamentals of Financial Management, 11/e by Van Horne and Wachowicz.
Slides prepared by Wu Xiaolan
精品课程《财务管理基础》英文课件ch04
80
0
N I/Y PV PMT FV
Compute
-800.0
N: “Trick” by using huge N like 1,000,000! I/Y: 10% interest rate per period (enter as 10 NOT .10) PV: Compute (Resulting answer is cost to purchase) PMT: $80 annual interest forever (8% x $1,000 face) FV: $0 (investor never receives the face value)
4-6
Bond Valuation
Important Terms Types of Bonds Valuation of Bonds Handling Semiannual Compounding
4-7
Important Bond Terms
A bond is a long-term debt instrument issued by a corporation or government. The maturity value (MV) [or face value] of a bond is the stated value. In the case of a U.S. bond, the face value is usually $1,000.
nI
=S
t=1
(1 + kd)t
+
MV
(1 + kd)n
4-13 V = I (PVIFA kd, n) + MV (PVIF kd, n)
Coupon Bond Example
精品课程《财务管理基础》英文课件ch
4-6
Bond Valuation
Important Terms Types of Bonds Valuation of Bonds Handling Semiannual Compounding
4-7
Important Bond Terms
A bond is a long-term debt instrument issued by a corporation or government. The maturity value (MV) [or face value] of a bond is the stated value. In the case of a U.S. bond, the face value is usually $1,000.
4-9
Different Types of Bonds
A perpetual bond is a bond that never matures. It has an infinite life.
V=
I
(1 + kd)1
I + (1 + kd)2
I + ... + (1 + kd)
I
=S
t=1
(1 + kd)t
4-8
Important Bond Terms
The bond’s coupon rate is the stated rate of interest; the annual interest payment divided by the bond’s face value. The discount rate (capitalization rate) is dependent on the risk of the bond and is composed of the risk-free rate plus a premium for risk.
Bond Valuation
Important Terms Types of Bonds Valuation of Bonds Handling Semiannual Compounding
4-7
Important Bond Terms
A bond is a long-term debt instrument issued by a corporation or government. The maturity value (MV) [or face value] of a bond is the stated value. In the case of a U.S. bond, the face value is usually $1,000.
4-9
Different Types of Bonds
A perpetual bond is a bond that never matures. It has an infinite life.
V=
I
(1 + kd)1
I + (1 + kd)2
I + ... + (1 + kd)
I
=S
t=1
(1 + kd)t
4-8
Important Bond Terms
The bond’s coupon rate is the stated rate of interest; the annual interest payment divided by the bond’s face value. The discount rate (capitalization rate) is dependent on the risk of the bond and is composed of the risk-free rate plus a premium for risk.
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1-16
Social Responsibility
Wealth maximization does not preclude the firm from being socially responsible.
Assume we view the firm as producing both private and social goods.
Thus, share price serves as a barometer for business performance.
1-11
What companies say about their corporate goal*
Cadbury Schweppes: “governing objective is growth in shareowner value”
1-13
Role of Management
Management acts as an agent for the owners (shareholders)
of the firm.
An agent is an individual authorized by another person, called the principal, to act in the latter’s behalf.
2. Describe "financial management" in terms of the three major decision areas that confront the financial manager.
3. Identify the goal of the firm and understand why shareholders' wealth maximization is preferred over other goals.
Includes shareholders, board of directors, and senior management.
Then shareholder wealth maximization remains the appropriate goal in governing the firm.
1-15
Agency Theory
Principals must provide incentives so that management acts in the principals’ best interests and then monitor results. Incentives include, stock options, perquisites, and bonuses.
6. Discuss the issues underlying social responsibility of the firm.
7. Understand the basic responsibilities of financial managers 1-2 and the differences between a "treasurer" and a "controller."
of bt type of financing?
What is the best financing mix?
What is the best dividend policy (e.g., dividend-payout ratio)?
How will the funds be physically acquired?
The Role of Financial Management
What is Financial Management? The Goal of the Firm Corporate Governance Organization of the Financial Management Function
Shortcomings of Alternative Perspectives
Profit Maximization
Maximizing a firm’s earnings after taxes.
Problems
Could increase current profits while harming firm (e.g., defer maintenance, issue common stock to buy T-bills, etc.). Ignores changes in the risk level of the firm.
1-18
Board of Directors
Typical responsibilities:
Set company-wide policy; Advise the CEO and other senior executives; Hire, fire, and set the compensation of the CEO; Review and approve strategy, significant investments, and acquisitions; and Oversee operating plans, capital budgets, and financial reports to common shareholders.
1-6
Asset Management Decisions
How do we manage existing assets efficiently? Financial Manager has varying degrees of operating responsibility over assets. Greater emphasis on current asset management than fixed asset management.
1-7
What is the Goal of the Firm?
Maximization of Shareholder Wealth!
Value creation occurs when we maximize the share price
for current shareholders.
1-8
What is the optimal firm size?
What specific assets should be acquired?
What assets (if any) should be reduced or eliminated?
1-5
Financing Decisions
Determine how the assets (LHS of balance sheet) will be financed (RHS
1-3
What is Financial Management?
Concerns the acquisition, financing, and
management of assets with some overall goal in
mind.
1-4
Investment Decisions
Most important of the three decisions.
ExxonMobil: “long-term, sustainable shareholder value”
1-12
*Refer to text for additional details
The Modern Corporation
Modern Corporation
Shareholders Management There exists a SEPARATION between owners and managers.
1-10
Strengths of Shareholder Wealth Maximization
Takes account of: current and future profits and EPS; the timing, duration, and risk of profits and EPS; dividend policy; and all other relevant factors.
Credit Suisse Group: “achieve high customer satisfaction, maximize shareholder value and be an employer of choice”
Dow Chemical Company: “maximize long-term shareholder value”
4. Understand the potential problems arising when management of the corporation and ownership are separated (i.e., agency problems).
5. Demonstrate an understanding of corporate governance.
1-1
Carroll College, Waukesha, WI
After studying Chapter 1,
you should be able to:
1. Explain why the role of the financial manager today is so important.
Chapter 1
The Role of Financial Management
© Pearson Education Limited 2004
Fundamentals of Financial Management, 12/e
Social Responsibility
Wealth maximization does not preclude the firm from being socially responsible.
Assume we view the firm as producing both private and social goods.
Thus, share price serves as a barometer for business performance.
1-11
What companies say about their corporate goal*
Cadbury Schweppes: “governing objective is growth in shareowner value”
1-13
Role of Management
Management acts as an agent for the owners (shareholders)
of the firm.
An agent is an individual authorized by another person, called the principal, to act in the latter’s behalf.
2. Describe "financial management" in terms of the three major decision areas that confront the financial manager.
3. Identify the goal of the firm and understand why shareholders' wealth maximization is preferred over other goals.
Includes shareholders, board of directors, and senior management.
Then shareholder wealth maximization remains the appropriate goal in governing the firm.
1-15
Agency Theory
Principals must provide incentives so that management acts in the principals’ best interests and then monitor results. Incentives include, stock options, perquisites, and bonuses.
6. Discuss the issues underlying social responsibility of the firm.
7. Understand the basic responsibilities of financial managers 1-2 and the differences between a "treasurer" and a "controller."
of bt type of financing?
What is the best financing mix?
What is the best dividend policy (e.g., dividend-payout ratio)?
How will the funds be physically acquired?
The Role of Financial Management
What is Financial Management? The Goal of the Firm Corporate Governance Organization of the Financial Management Function
Shortcomings of Alternative Perspectives
Profit Maximization
Maximizing a firm’s earnings after taxes.
Problems
Could increase current profits while harming firm (e.g., defer maintenance, issue common stock to buy T-bills, etc.). Ignores changes in the risk level of the firm.
1-18
Board of Directors
Typical responsibilities:
Set company-wide policy; Advise the CEO and other senior executives; Hire, fire, and set the compensation of the CEO; Review and approve strategy, significant investments, and acquisitions; and Oversee operating plans, capital budgets, and financial reports to common shareholders.
1-6
Asset Management Decisions
How do we manage existing assets efficiently? Financial Manager has varying degrees of operating responsibility over assets. Greater emphasis on current asset management than fixed asset management.
1-7
What is the Goal of the Firm?
Maximization of Shareholder Wealth!
Value creation occurs when we maximize the share price
for current shareholders.
1-8
What is the optimal firm size?
What specific assets should be acquired?
What assets (if any) should be reduced or eliminated?
1-5
Financing Decisions
Determine how the assets (LHS of balance sheet) will be financed (RHS
1-3
What is Financial Management?
Concerns the acquisition, financing, and
management of assets with some overall goal in
mind.
1-4
Investment Decisions
Most important of the three decisions.
ExxonMobil: “long-term, sustainable shareholder value”
1-12
*Refer to text for additional details
The Modern Corporation
Modern Corporation
Shareholders Management There exists a SEPARATION between owners and managers.
1-10
Strengths of Shareholder Wealth Maximization
Takes account of: current and future profits and EPS; the timing, duration, and risk of profits and EPS; dividend policy; and all other relevant factors.
Credit Suisse Group: “achieve high customer satisfaction, maximize shareholder value and be an employer of choice”
Dow Chemical Company: “maximize long-term shareholder value”
4. Understand the potential problems arising when management of the corporation and ownership are separated (i.e., agency problems).
5. Demonstrate an understanding of corporate governance.
1-1
Carroll College, Waukesha, WI
After studying Chapter 1,
you should be able to:
1. Explain why the role of the financial manager today is so important.
Chapter 1
The Role of Financial Management
© Pearson Education Limited 2004
Fundamentals of Financial Management, 12/e