Principles of Corporate Finance Brealey and Myers u
Principles of Corporate Finance Brealey and Myers u Sixth Edition Finance and the Financial Manager Lecturer: Dr. Zvi Wiener 02 -588 -3049 mswiener@mscc. huji. ac. il http: //pluto. huji. ac. il/~mswiener/zvi. html Slides by Matthew Will Irwin/Mc. Graw Hill Chapter 1 ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 2 Main Financial Innovations w Money w Loans w Banks and other intermediaries w Stocks w Derivatives w Risk Management Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 3 Topics Covered w What Is A Corporation? w The Role of The Financial Manager w Who Is The Financial Manager? w Separation of Ownership and Management w Financial Markets Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 4 Corporate Structure Sole Proprietorships Partnerships Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 5 Corporate Structure Sole Proprietorships Unlimited Liability Personal tax on profits Partnerships Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 6 Corporate Structure Sole Proprietorships Unlimited Liability Personal tax on profits Partnerships Corporations Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 7 Corporate Structure Sole Proprietorships Unlimited Liability Personal tax on profits Partnerships Limited Liability Corporations Corporate tax on profits + Personal tax on dividends Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 8 Role of The Financial Manager (1) Firm's operations Financial manager Financial markets (1) Cash raised from investors Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 9 Role of The Financial Manager (2) Firm's operations (1) Financial manager Financial markets (1) Cash raised from investors (2) Cash invested in firm Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 10 Role of The Financial Manager (2) (1) Financial manager Firm's operations Financial markets (3) (1) Cash raised from investors (2) Cash invested in firm (3) Cash generated by operations Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 11 Role of The Financial Manager (2) (1) Financial manager Firm's operations (4 a) Financial markets (3) (1) Cash raised from investors (2) Cash invested in firm (3) Cash generated by operations (4 a) Cash reinvested Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 12 Role of The Financial Manager (2) (1) Financial manager Firm's operations (4 a) Financial markets (4 b) (3) (1) Cash raised from investors (2) Cash invested in firm (3) Cash generated by operations (4 a) Cash reinvested (4 b) Cash returned to investors Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 13 Who is The Financial Manager? Chief Financial Officer Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 14 Who is The Financial Manager? Chief Financial Officer Treasurer Irwin/Mc. Graw Hill Comptroller ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 15 Ownership vs. Management Difference in Information Different Objectives w Stock prices and returns w Managers vs. stockholders w Issues of shares and other securities w Top mgmt vs. operating mgmt w Dividends w Stockholders vs. banks w Financing and lenders Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 16 Financial Markets Money Primary Markets Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 17 Financial Markets Money Primary Markets Secondary Markets Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 18 Financial Markets Money Primary OTC Markets Secondary Markets Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 19 Financial Institutions Company Obligations Funds Intermediaries Banks Insurance Cos. Brokerage Firms Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
1 - 20 Financial Institutions Intermediaries Obligations Funds Investors Depositors Policyholders Investors Irwin/Mc. Graw Hill ©The Mc. Graw-Hill Companies, Inc. , 2000
- Slides: 20