BA 101 Introduction to Business 17. Financial Management and Banking.

Slides:



Advertisements
Similar presentations
Part 6 Financing the Enterprise © 2015 McGraw-Hill Education.
Advertisements

Chapter # 4 Instruments traded on Financial Markets.
WEEK 14: FINANCIAL MANAGEMENT -2 BUSN 102 – Özge Can.
Chapter Twenty Mastering Financial Management. The Need for Financing Short-term financing –Money that will be used for one year or less Long-term financing.
18-1 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 18Condensed18Condensed Financial.
Financial Management and Securities Markets Chapter 16 *modified by other sources.
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 16 | Slide 1 Chapter 16: Mastering Financial Management.
Chapter 16 Financing. Learning Objectives  Identify the common methods of debt financing for firms.  Identify the common methods of equity financing.
Chapter 14. Working Capital Management Working-Capital Management n Current Assets u cash, marketable securities, inventory, accounts receivable n Long-Term.
Financial Decisions: Managing Financial Resources Mike’s Bikes Part III due Wednesday March 21 st in-class Mike’s Bikes Part II returned at the end of.
Finance Structures and Issues in the UAE Financial structure is a mixture of long–term debt and equity that a company uses to finance its operations, it’s.
17 Chapter Financial Management.
Business in Action 6e Bovée/Thill Financial Management Chapter 18.
Copyright by Paradigm Publishing, Inc. INTRODUCTION TO BUSINESS CHAPTER 16 Financing.
© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Financial Management and Banking.
© Prentice Hall, 2007Excellence in Business, 3eChapter Financial Management and Banking.
© 2011 South-Western | Cengage Learning Foreign Exchange and International Finance Money Systems Around the World Foreign Exchange And Currency.
18-1 Financial Management Chapter 18. Chapter 18 Objectives After studying this chapter, you will be able to: Identify three fundamental concepts that.
Financial Assets (Instruments)
THE NEED FOR CAPITAL * START-UP OR VENTURE CAPITAL * WORKING CAPITAL * INVESTMENT CAPITAL.
FHF Ferrell Hirt Ferrell M: Business 2 nd Edition.
FHF McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Financial Management Chapter 18. Financial Management Chapter 18.
Reporting and Analyzing Cash Flows Chapter 17. Purposes of the Statement of Cash Flows Designed to fulfill the following: – predict future cash flows.
Exploring Business © 2009 FlatWorld Knowledge 13-1 Chapter 13 Managing Financial Resources.
Introduction to Business 3e 16 Part VI: Financial Management Copyright © 2004 South-Western. All rights reserved. FinancingFinancing.
© 2009 South-Western, a division of Cengage Learning 1 Chapter 9: FINANCE Using Funds To Maximize Value.
3.5 Financial Accounts Chapter 22. What are ACCOUNTS? Financial records of business transactions which provide information to groups within and outside.
The Financial Statements Presentations for Chapter 2 by Glenn Owen.
PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved. Chapter 14 Understanding Money and Banking.
Chapter 20 THE FUTURE OF BUSINESS Gitman & McDaniel 5 th Edition THE FUTURE OF BUSINESS Gitman & McDaniel 5 th Edition Chapter Managing the Firm’s Finances.
 What is a Bank?  What do a Bank?  To create generate capital market  To play effective role in the Economy by supplying capital.  To persuade quench,
Chapter 18 Capital & Capital Market Financial Management  It deals with raising of finance, and using and allocating financial resources of a company.
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 3 | Slide 1 Financial Management Chapter16.
© Prentice Hall, 2007Excellence in Business, 3eChapter Keeping the Engine Running: Financial Management and Banking.
İntroduction to Business 2 BUS 102 Erlan Bakiev, Ph. D. Zirve University BUS 102.
Finance Business function of planning, obtaining, and managing a company’s funds in order to accomplish its objectives effectively and efficiently. THE.
© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON7-1 GOALS  Explain the role of money and currency systems in international business.  Identify factors.
Lecture 28. Chapter 17 Understanding the Principles of Accounting.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Chapter 17 Financial Management and Institutions.
* WHAT’S FINANCE? The Role of Finance and Financial Managers * LG1
Financial Management and Securities Markets
19-1 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. NickelsMcHughMcHugh Nickels Cover.
Financial Accounting Fundamentals
Analyzing Financial Statements
Chapter Nineteen Mastering Financial Management. Copyright © Cengage Learning. All rights reserved. Learning Objectives 1.Explain the need for financing.
Financial Management and the Securities Market 12 Chapter © 2004 by Nelson, a division of Thomson Canada Limited.
Equity Versus Debt Debt Equity Credit Card ST Credit Facility Bank Loan Bond SharesVenture Capital Business Angels Creditors get: Periodic interest payments.
18-1 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 18Condensed18Condensed Financial.
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Financial Statement Analysis K R Subramanyam John J Wild.
The Importance of Understanding Finance The Parsley Patch! Problem? Solution? Outcome?
The Financial System. Introduction Money – Medium of exchange – Allows specialisation in production – Solves the divisibility problem, i.e. where medium.
Financial Management Decisions n Investment: What assets to own? n Financing: How to pay for those assets? n Dividend: What to do with Net Income?
Managing the Firm’s Finances Chapter 21. Chapter 21 Learning Goals 1.W 1.What roles do finance and the financial manager play in the firm’s overall strategy?
FINANCIAL MANAGEMENT Bus The importance of finance and financial management to an organization 2. The responsibilities of financial managers. 3.
Understanding Financial Statements Professor Brandon Walcutt April 11, 2015.
Business Finance Finance is the study of funds management. The general areas of finance are business finance, personal finance (private finance), and public.
Published by Flat World Knowledge, Inc. © 2014 by Flat World Knowledge, Inc. All rights reserved. Your use of this work is subject to the License Agreement.
* * Chapter Eighteen Financial Management Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Accounting and Financial.
Students should be able to:  Understand and explain the different sources of finance available to a business.
Exploring Business 2.0 © 2012 Flat World Knowledge 13-1 Chapter 13: Managing Financial Resources.
Financing a Business Two Sources of Cash Debt Equity Commercial Loans
Business Finance Chapter 28.
and short term financial planning
Chapter 3 What Is Money?.
X100 Introduction to Business
Introduction & Terminology
Copyright 2005 Prentice- Hall, Inc.
Presentation transcript:

BA 101 Introduction to Business 17. Financial Management and Banking

Role of Financial Management Rent and Utilities Plant and Equipment Materials Advertising-Promotions Distribution Wages, Salaries, Training Interest, Dividends, Taxes Sales from Operations Sales from Assets Retained Earnings Trade Credit Bonds Stocks Commercial Loans Management Decides How To Use Funds

Operating Budget Revenues Expenses Cash Flows Master Budget Master Budget Financial Control Cost ControlExpenditures Plan for the Future

Financing Operations and Growth Length of Term Cost of Capital Debt or Equity

Length of Term Short-Term FinancingLong-Term Financing Time Frame More Than One Year Less Than One Year Maintain Liquidity Meet Obligations Acquire Assets Fund Growth

Long-Term Loans Leasing Bonds Preferred Stock Common Stock Sale of Assets Retained Earnings Internal Sources Internal Sources Debt Capital Equity Capital External Sources External Sources Long-Term Projects Long-Term Projects Long-Term Financing Long-Term Financing

Cost of Capital Company Risk Opportunity Cost Interest Rates Quality Time Prime Rate Discount Rate Discount Rate Leverage Capital Structure Capital Structure

CharacteristicDebtEquity MaturitySpecificNonspecific Claim on IncomeFixed CostDiscretionary Cost Claim on AssetsPriorityResidual Influence Over Management LittleVariable Debt versus Equity

Open Account Purchases Short-Term Promissory Note Secured or Unsecured Owner Rents Asset To User Obligation of Repayment Plus Interest Trade Credit Commercial Paper LoansLeasesBonds Types of Debt Financing

Checking and Savings Credit, Debit, and Smart Cards Financial Services Business Loans On-Line Payments and Electronic Banking

The Federal Reserve System Conducting Monetary Policy Stabilizing the Banking System Stabilizing the Economy Clearing Checks

Durable Portable Medium of Exchange Medium Measure of Value Measure Store Store Stable Divisible What is Money?