Introduction Learning website: http://highered.mcgraw-hill.com/sites/0073382302/information_center_view0 Username:wushuchang666@126.com Password:6904171 Email:ailidu@163.com Email in common : taxdal@163.com keyword:dobest 中译本:《公司理财》（第五版）中国人民大学出版社 （作者：理查德·A·布雷利 等）
Chapter 1 Goals and the Governance of the Corporation Fundamentals of Corporate Finance seventh Edition Richard A. Brealey Stewart C. Myers Alan J. Marcus Chapter 1 Goals and the Governance of the Corporation Slides by Matthew Will McGraw Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved
Topics Covered Investment （投资）and （Financing）筹资 Decisions What is a Corporation公司? Who Is The Financial Manager财务经理? Goals of the Corporation Careers in Finance 2 2 2 2 3 2
Investment and Financing Decisions Capital Budgeting (资本预算)Decision Decision to invest in tangible （有形）or intangible assets. …also called the Investment Decision 5 5 5 5 6 5
Investment and Financing Decisions “Capital Budgeting(investment)” Tangible Assets Toyota Plants @ $3 billion new debt Intangible Assets Patents 、trademark right 5 5 5 6 5 5
Investment and Financing Decisions The form and amount of financing of a firm’s investments. Capital Structure The mix of long term debt and equity financing. Eg:p5 self-test 1.1 5 5 5 5 6 5
Investment and Financing Decisions (2) Cash invested in firm (2) (1) Cash raised from investors (1) Firm's (4a) Cash reinvested (4a) Financial operations Investors Manager (3) Cash generated by operations (3) Investment assets Real assets (4b) Cash returned to investors (4b) 6 6 6 6 10 11
The Role of The Financial Manager Real Assets（实物资产）—直接投资 Assets used to produce goods and services. Financial Assets（金融资产）—间接投资 Financial claims to the income generated by the firm’s real assets. Eg: p5 self –test 1.2 5 5 5 5 6 5
What is a Corporation? Corporation Types of Corporations A business organized as a separate legal entity owned by stockholders. Types of Corporations Public Companies（上市） Private Corporations（非上市） Limited Liability Corporations (LLC) 3 3 3 3 4 3
Organizing a Business Types of Business Organizations Sole Proprietorships Partnerships Corporations Limited Liability Options Limited Liability Partnerships Limited Liability Corporations Professional Corporations 3 3 3 3 4 3
Organizing a Business 4 4 4 4 5 4
Personal tax on profits Corporate Structure Sole Proprietorships Unlimited Liability Personal tax on profits Partnerships Limited Liability Corporate tax on profits + Personal tax on dividends Corporations
Who is The Financial Manager? Chief Financial Officer Treasurer（财务主管） Controller（会计主管） 19
Who is The Financial Manager? Chief Financial Officer (CFO) Oversees the treasurer and controller and sets overall financial strategy. Treasurer Responsible for financing, cash management, and relationships with banks and other financial institutions. Controller Responsible for budgeting, accounting, and taxes. 3 3 3 3 4 3
Goals of The Corporation Shareholders desire wealth maximization(≠maximize profits) Do managers maximize shareholder wealth? Mangers have other goals “Agency Problems”（代理） represent the conflict of interest between management and owners 17
Goals of The Corporation Ethics & Management Objectives Does value maximization justify unethical behavior? Enron example WorldCom example 18
Agency Problem Agency Problems（代理问题） Stakeholder（利益相关者） Managers, acting as agents for stockholders, may act in their own interests rather than maximizing value. Stakeholder（利益相关者） Anyone with a financial interest in the firm. 3 3 3 3 4 3
Goals of The Corporation Agency Problem Solutions 1 - Compensation plans 激励政策 2 - Board of Directors 董事会 3 – Takeovers 接管，解聘 4 - Specialist Monitoring 专家监督 5 - Legal and Regulatory Requirements法律监管要求 18
Careers in Finance
Careers in Finance
Web Resources www.issproxy.com/issgovernance.html www.nolo.com www.bizfilings.com www.business-ethics.com www.corpgov.net www.thecorporatelibrary.com www.careers-in-finance.com www.careers.wsj.com www.wageweb.com www.financeprofessor.com