1. Introduction Learning website:
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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）

2. 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

3. 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

4. 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

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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Organizing a Business 4 4 4 4 5 4

12. 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

13. Who is The Financial Manager?
Chief Financial Officer
Treasurer（财务主管）
Controller（会计主管） 19

14. 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

15. 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

16. Goals of The Corporation
Ethics & Management Objectives
Does value maximization justify unethical behavior?
Enron example
WorldCom example 18

17. 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

18. 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

19. Careers in Finance

20. Careers in Finance

21. Web Resources www.issproxy.com/issgovernance.html www.nolo.com