財(cái)務(wù)管理專業(yè)英語(yǔ)-Introduction to Financial Management

IntroductiontoFinancialManagementChapter10ChapterOutlineFinance:AQuickLookFinancialManagerFormsofBusinessOrganizationTheGoalofFinancialManagementTheAgencyProblemandControloftheCorporationFinancialMarketsandtheCorporation1BasicAreasOfFinanceCorporatefinanceInvestmentsFinancialinstitutionsInternationalfinance2InvestmentsWorkwithfinancialassetssuchasstocksandbondsValueoffinancialassets,riskversusreturnandassetallocationJobopportunitiesStockbrokerorfinancialadvisorPortfoliomanagerSecurityanalyst3FinancialInstitutionsCompaniesthatspecializeinfinancialmattersBanks–commercialandinvestment,creditunions,savingsandloansInsurancecompaniesJobopportunities4BanksinChinaCentralbank:PBCrulingrateofinterest;treasury;foreignreserve;settlementThreepolicybanks:Theexport-importbankofChina;Chinadevelopmentbank;AgriculturedevelopmentbankofChinaFourstate-ownedbanks:CBC(CCB);BC;ABC;ICBCStock-holdingbanks:

5FormerfivetopinvestmentbanksGoldmanSachsMorganStanleyLehmanBrotherMerrillLynchBearSteam6InternationalFinanceThisisanextendedareaoftheaboveareasdiscussedintheinternationalscope.ItmayallowyoutoworkinothercountriesoratleasttravelonaregularbasisNeedtobefamiliarwithexchangeratesandpoliticalriskNeedtounderstandthecustomsofothercountriesandspeakingaforeignlanguagefluentlyisalsohelpful7FinancialmanagementSomeimportantquestionsthatareansweredusingfinanceWhatlong-terminvestmentsshouldthefirmtakeon?Wherewillwegetthelong-termfinancingtopayfortheinvestment?Howwillwemanagetheeverydayfinancialactivitiesofthefirm?8FinancialManagerFinancialmanagerstrytoanswersomeorallofthesequestionsThetopfinancialmanagerwithinafirmisusuallytheChiefFinancialOfficer(CFO)Treasurer–overseescashmanagement,creditmanagement,capitalexpendituresandfinancialplanningController–overseestaxes,costaccounting,financialaccountinganddataprocessing9FinancialManagementDecisionsCapitalbudgeting(investmentdecision)Whatlong-terminvestmentsorprojectsshouldthebusinesstakeon?Capitalstructure(financingdecision)Howshouldwepayforourassets?Shouldweusedebtorequity?WorkingcapitalmanagementHowdowemanagetheday-to-dayfinancesofthefirm?Long-termdecisionsShort-termdecisions10FormsofOrganizationThreemajorformsintheunitedstatesSoleproprietorshipPartnershipGeneralLimitedCorporationLimitedliabilitycompany“Bigfour”11SoleProprietorshipAdvantagesEasiesttostartLeastregulatedSingleownerkeepsalltheprofitsTaxedonceaspersonalincomeDisadvantagesLimitedtolifeofownerEquitycapitallimitedtoowner’spersonalwealthUnlimitedliabilityDifficulttosellownershipinterest12PartnershipAdvantagesTwoormoreownersMorecapitalavailableRelativelyeasytostartIncometaxedonceaspersonalincomeDisadvantagesUnlimitedliabilityGeneralpartnershipLimitedpartnershipPartnershipdissolveswhenonepartnerdiesorwishestosellDifficulttotransferownership13CorporationAdvantagesLimitedliabilityUnlimitedlifeSeparationofownershipandmanagementTransferofownershipiseasyEasiertoraisecapitalDisadvantagesSeparationofownershipandmanagementDoubletaxation(incometaxedatthecorporaterateandthendividendstaxedatpersonalrate)14GoalOfFinancialManagementWhatshouldbethegoalofacorporation?Maximizeprofit?Minimizecosts?Maximizemarketshare?Maximizethecurrentvalueofthecompany’sstock?Doesthismeanweshoulddoanythingandeverythingtomaximizeownerwealth?15TheAgencyProblemAgencyrelationshipPrincipalhiresanagenttorepresenttheirinterestStockholders(principals)hiremanagers(agents)torunthecompanyAgencyproblemConflictofinterestbetweenprincipalandagentManagementgoalsAgencycost:directcostandindirectcost16ManagingManagersManagerialcompensationIncentivescanbeusedtoalignmanagementandstockholderinterestsTheincentivesneedtobestructuredcarefullytomakesurethattheyachievetheirgoalCorporatecontrolProxyfightThethreatofatakeovermayresultinbettermanagement.caseOtherstakeholders17CaseoftakeoverCase1:hostiletakeoverAcquiringfirm:ShengdaTargetfirm:Sina2005.2,19.5%acquisitiononNasdaq2005.3,anti-takeover:poisonpill(sharesdilutionplan)19.5%---2.28%CometoadeadlockCase2:Acquiringfirm:GroupDanoneTargetfirm:WahahaJointcontributionfrom1996:Danone51%;Wahaha49%Bidaprice:4billionRmb2009settleoutofcourt:Danone51%sharessoldfor0.3billionEuros18FinancialMarketsCashflowstothefirmClassification:1.Financingperiod:currencymarket;capitalmarket2.Tradingobject:spotmarket;futuresmarket;option3.Thefirstissueofsecurity:primary;secondary

marketsSecondarymarket:dealervs.auctionmarketsAuction:physicalplace;centralizedbidding;threepriorityexample:NYSEDealer:nophysicalplace;OTCtrasactionexample:NASDAQ19Figure1.220QuickQuizWhatarethefourbasicareasoffinanc