(精品)Brigham_Ch1

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,8/6/2012,#,FIN 36054 Intermediate Business Finance,Syllabus,Introductions(video),Chapter 1,Video Introductions,Groups of 5.,Write names on sheet in order that you stand.,Sign name as it is listed in the official records,but write the name you prefer to be called next to it.,From left to right,in a loud voice:,Name(what do you like to be called),Major(s)/Minor(s),When do you plan to graduate.,3,Chapter 1,An Overview of Financial Management,4,Why is corporate finance important to all managers?,Corporate finance provides the skills managers need to:,Identify and select the corporate strategies and individual projects that add value to their firm.,Forecast the funding requirements of their company,and devise strategies for acquiring those funds.,Forms of business organization,Proprietorship,Partnership,General partnership,Limited partnership,LLC/LLP,Corporation,6,What should be managements primary objective?,The primary objective should be fundamental stock price maximization.,Societal benefit,Consumer benefit,Employee benefit,Fundamental/intrinsic value vs.market value,7,What three aspects of cash flows affect an investments value?,Amount of expected cash flows(bigger is better),Timing of the cash flow stream(sooner is better),Risk of the cash flows(less risk is better),8,Free Cash Flows(FCF),Free cash flows are the cash flows that are:,Available(or free)for distribution,To all investors(stockholders and creditors),After paying current expenses,taxes,and making the investments necessary for growth(all from operations).,9,What is the weighted average cost of capital(WACC)?,The weighted average cost of capital(WACC)is the average rate of return required by all of the companys investors(stockholders and creditors),10,What factors affect the weighted average cost of capital?,Capital structure(the firms relative amounts of debt and equity),Interest rates,Risk of the firm,Stock market investors overall attitude toward risk,11,What determines a firms value?,A firms value is the sum of all the future expected free cash flows when converted into todays dollars:,Value=,FCF,1,FCF,2,FCF,(1+WACC),1,(1+WACC),(1+WACC),2,+,+,Cost of Money,The rate of interest/return that the user of money gives to the provider of money.,Impacted by:,Production opportunities,Time preferences for consumption:Earlier preference=higher cost of money/interest rate.,Risk,Inflation,Types of Financial Securities,Debt,Capital market vs.money market,Equity,Derivatives value depend on the value of another asset.,Securitized assets,Mortgage-backed securities and other forms.,Relevant for the financial crisis.,