公司理财 期末重点总结

C 1

Corporate Finance addresses the following three questions:

1.What long-term investments should the firm choose? Capital Budgeting(资本预算)

2.How should the firm raise funds for the selected investments? Capital Structure(资本结构)

3.How should short-term assets be managed and financed? Working Capital Management(营运资本)

Capital Budgeting: The process of planning and managing a firm’s long-term investments is called capital budgeting.

Capital Structure: A firm’s capital structure (or financial structure) is the specific mixture of long-term debt and equity the firm uses to finance its operations.

Working Capital Management: The term working capital refers to firm’s short-tern assets and its short-term liabilities. Managing the firm’s working capital is a day-to-day activity that ensures that the firm has sufficient resources to continue its operations and avoid costly interruptions.

Sole Proprietorship: A sole proprietorship is a business owned by one person. The owner can keep all the profit. However, he has unlimited liability for business debts.

Partnership: A partnership is similar to a proprietorship, except that there are two or more owners.

General Partnership: All the partners share in gains or losses, and all have unlimited liability for all partnership debts, not just some particular share. Limited Partnership: One or more general partners will run the business and have unlimited liability, but there will be one or more limited partners who will not actively participate in the business.

Primary disadvantages: 1.unlimited liability for business debt on the part of the owners 2.limited life of the business 3.difficulty of transferring ownership Corporation: A corporation is a legal person separate and distinct from its owners. Disadvantages: Double taxation, separation of ownership and control rights. The goal of financial management is to maximize the current value per share of the existing stock.

A more general goal：Maximize the market value of the existing owner’s equity. Agency relationship：Principal hires an agent to represent his/her interest Agency problem：Separation of ownership and control rights, Conflict of interest between principal and agent.

Agency costs：refers to the costs of the conflict of interest between stockholders and management.

C2

Goal: cash is king

The goal of financial management：is to maximize the market value of the stock The balance sheet equation (Balance sheet identity)

Assets = liabilities + shareholder’s equity

The value of liabilities and shareholder’s equity

= current liabilities + long term debt + shareholder’s equity

Net working capital净营运资本=Current assets – current liabilities

Liquidity流动性: refers to the speed and ease which an asset can be converted to cash.

the more liquid business is, the less likely it is to experience financial distress. Debt versus Equity（负债与权益）: Shareholders’ equity= Assets - Liabilities Market value VS book value

Book value账面价值：under Generally Accepted Accounting Principles（公认会计原则GAAP），audited financial statements generally show assets at historical cost。historical cost历史成本：assets carried on the books

MV: what the asset could sold for

BV: what the firm paid for them

异同：

1. For current assets, short-term debt, many debt, market value and book value might be somewhat similar because current assets are brought and converted into cash over

a relatively short span of time;

2. For fixed assets, it would be purely a coincidence if the actual market value of an asset (what the asset could be sold for) were equal to its book value

3. Many of the most valuable assets that a firm have-good management , a good reputation , talented employees-don’t appeared on the balance sheet at all.

4. For both of them, assets= debt + equity

Corporate finance is interested in the market value of the firm

Financial leverage e财务杠杆：the use of debt in a firm’s capital structure. the more debt a firm has (as a percentage of assets ), the greater is its degree of financial leverage

The income statement (利润表): measures performance over some period of time The income statement equation: Revenues收益– Expenses = Income

GAPP and the income statement:

1.the realization/general principle(实现/一般原则): revenue is recognized at the time of sale, which need not be the same as the time of collection (accrues权责发生制)

2.the matching principle配比原则: expenses shown on the income statement are based on the matching principle

3.the figure shown on the income statement may not be at all representative of the actual cash inflows and outflows that occurred during a particular period. Noncash items(非现金项目)

1.A primary reason that accounting income differs from cash flow is that an income statement contains noncash items.

2.Depreciation折旧 is one of the most important example.

Time and costs：

1.To financial managers: costs are divided into fixed costs and variable costs

2.To the accountants: costs are divided into production costs（产品成本）and period