FINANCE 415 BUSINESS FINANCING DECISIONS GO OVER SYLLABUS OFFICE HOURS, ETC. COURSE PROCEDURES BASIC THRUST OF THE CLASS –INSTITUTIONAL DETAIL –THEORY.

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Presentation transcript:

FINANCE 415 BUSINESS FINANCING DECISIONS

GO OVER SYLLABUS OFFICE HOURS, ETC. COURSE PROCEDURES BASIC THRUST OF THE CLASS –INSTITUTIONAL DETAIL –THEORY –APPLICATIONS ( CASES ETC.)

THREE FOCAL ISSUES IN MANAGERIAL FINACE KIND OF BUSINESS TO INVEST IN WHERE TO ACQUIRE NEEDED CAPITAL HOW TO MANAGE CASH FLOW

FINANCING BUSINESSES SELF FINANCING - 80% FOR ALL FIRMS. DIFFICULT FOR SMALL, GROWING FIRMS EXTERNAL FINANCING –BORROWING FROM VARIOUS SOURCES –ISSUING PUBLIC DEBT INSTRUMENTS –ISSUING COMMON STOCK

PREFERENCE RANKINGS 1 -RETAINED EARNINGS STRAIGHT DEBT CONVERTIBLE DEBT EXTERNAL COMMON EQUITY STRAIGHT PREFERRED CONVERTIBLE PREFERRED

BALANCE SHEET IDENTITY ASSETS LIABILITIES OWNERS’ EQUITY [A = L + OE] FORMAT

FOCUS ON CASH FLOW LINKS INCOME STATEMENT AND BALANCE SHEET HISTORICAL PERSPECTIVE USE TO DISCUSS MANAGERIAL EFFECTS OF FINANCING DECISIONS

SAMPLE OF MARKET CREATION HABITAT FOR HUMANITY USE NO-INTEREST MORTGAGES ALWAYS CONSTRAINED FOR CASH WHAT TO DO?

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