公司金融英文版.ppt

1-2,Goals and Governance of the Corporation,This chapter introduces the corporation,its goals,and the roles of financial managers.,Source:U.S.Census 2008 SUSB Annual Data,Contents,1.1 Investment and Financing Decisions1.2 What is a Corporate?1.3 Who is the Financial Manager?1.4 Goals of the Corporate1.5 Careers in Finance,1-3,1-4,Investment and Financing Decisions,The Investment DecisionReal AssetsThe Financing DecisionFinancial Assets,1-5,Investment and Financing Decisions,Are the following capital budgeting or financing decisions?Apple decides to spend$500 million to develop a new iPhone.GE borrows$400 million from bond investors.Microsoft issues 100 million shares to buy a small technology company.,1-6,What is a Corporation?,Corporation-A business organized as a separate legal entity owned by stockholders.Types of Corporations:Public CorporationsPrivate Corporations,1-7,Benefits of the Corporation,Limited liabilityInfinite lifespanEase of raising capital,1-8,Drawbacks of the Corporation,Corporations face the problem of double taxationImproper corporate structures may lead to“Agency Problems”,1-9,Goals of The Corporation,Shareholders want wealth maximizationWealth maximization vs.profit maximization:Pitfall:Profits from which period?Pitfall:Cutting dividends to increase cash reserves,1-10,The Ethics of Maximizing Value,Does value maximization justify unethical behavior?Recent examples:Enron WorldComBernard Madoff,1-11,Agency Problem,Do managers really maximize value?Agency ProblemsManagers are agents for stockholders,but the managers may act in their own interests rather than maximizing valueShareholders vs.Stakeholders,1-12,Agency Problem,Different InformationStock prices vs.returnsDividend PolicyFinancing Decisions,Different ObjectivesManagers vs.shareholdersTop managers vs.lower managersStockholders vs.banks and lenders,1-13,Agency Problem Solutions,Compensation plansBoard of DirectorsBlockholders,1-14,Agency Problem Solutions,TakeoversSpecialist MonitoringLegal and Regulatory Requirements,1-15,4A.Cash reinvested in the firm4B.Cash returned to investors,Role of the Financial Manager,Cash raised from investors(how?)Cash invested in firmCash generated by operations,1-16,The Financial Manager,Most large companies have 3 top-level financial managers:,1-17,Appendix:Careers in Finance,