Chapter McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 1 Introduction to Corporate Finance
Chapter 01 – Index of Sample Problems There are no problems for this Chapter
Corporate finance What is corporate finance? What is the role of financial manager? What is the goal of financial management? Financial management environment. Corporate form of organization. Conflicts within corporation.
Jobs of financial manager What long-run investment should take on? Capital Budgeting How to get long-run finance to pay for your investment? Capital structure Management of everyday financial activities. Working capital management
Forms of business organization Sole Proprietorship Partnership Corporation
Goal of financial management Maximize the current value per share of existing stock Maximize the market value of the existing owner’s equity
Agency problem Agency cost Managerial compensation Control of firm
Financial markets Cash flows to and from the firm
Chapter McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 1 End of Chapter 1