文档介绍：Introduction to Corporate FinanceChapter 1Copyright ? 2010 by the McGraw-panies, Inc. All rights -Hill/Irwin1-1Key Concepts and Skills?Know the basic types of financial management decisions and the role of the Financial Manager?Know the financial implications of the various forms of anization?Know the goal of financial management?Understand the conflicts of interest that can arise between owners and managers?Understand the various regulations that firms face1-2Chapter What is Corporate Finance? The Corporate The Importance of Cash The Goal of Financial The Agency Problem and Control of the Regulation1- What Is Corporate Finance?Corporate Finance addresses the following three questions: long-term investments should the firm choose? should the firm raise funds for the selected investments? should short-term assets be managed and financed?1-4Balance Sheet Model of the FirmCurrent AssetsFixed Assets1 Tangible 2 IntangibleTotal Value of Assets:Shareholders’EquityCurrent LiabilitiesLong-Term DebtTotal Firm Value to Investors:1-5The Capital Budgeting DecisionCurrent AssetsFixed Assets1 Tangible 2 IntangibleShareholders’EquityCurrent LiabilitiesLong-Term DebtWhat long-term investments should the firm choose?1-6The Capital Structure DecisionHow should the firm raise funds for the selected investments?Current AssetsFixed Assets1 Tangible 2 IntangibleShareholders’EquityCurrent LiabilitiesLong-Term Debt1-7Short-Term Asset ManagementHow should short-term assets be managed and Working CapitalShareholders’EquityCurrent LiabilitiesLong-Term DebtCurrent AssetsFixed Assets1 Tangible 2 Intangible1-8The Financial ManagerThe Financial Manager’s primary goal is to increase the value of the firm by:1. Selecting value creating projects2. Making smart financing decisions1-anization ChartChairman of the Board and Chief Executive Officer (CEO)President and Chief Operating Office