Chapter 1 Introduction to Financial Management 0
0 Chapter 1 Introduction to Financial Management
Chapter Outline Finance:A Quick Look Business Finance and The 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 Outline n Finance: A Quick Look n Business Finance and The Financial Manager n Forms of Business Organization n The Goal of Financial Management n The Agency Problem and Control of the Corporation n Financial Markets and the Corporation
Financial Management Decisions Capital budgeting 口 What long-term investments or projects should the business take on? Capital structure 0 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?
2 Financial Management Decisions n Capital budgeting q What long-term investments or projects should the business take on? n Capital structure q How should we pay for our assets? q Should we use debt or equity? n Working capital management q How do we manage the day-to-day finances of the firm?
Hypothetical Organization Chart Board of Directors Chairman of the Board and Chief Executive Officer(CEO) President and Chief Operating Officer(COO) Vice President and Chief Financial Officer(CFO) Treasurer Controller Cash Manager Credit Manager Tax Manager Cost Accounting Capital Expenditures Financial Planning Financial Accounting Data Processing 3
3 Hypothetical Organization Chart Chairman of the Board and Chief Executive Officer (CEO) Board of Directors President and Chief Operating Officer (COO) Vice President and Chief Financial Officer (CFO) Treasurer Controller Cash Manager Capital Expenditures Credit Manager Financial Planning Tax Manager Financial Accounting Cost Accounting Data Processing
Chapter 2 Financial Statements,Taxes,and Cash Flow 4
4 Chapter 2 Financial Statements, Taxes, and Cash Flow