Please enable JavaScript.
Coggle requires JavaScript to display documents.
CHAPTER 1 - INTRODUCTION TO CORPORATE FINANCE (FIN544) - Coggle Diagram
CHAPTER 1 - INTRODUCTION TO CORPORATE FINANCE
(FIN544)
DEFINITION
CORPORATE FINANCE
utilizing the company's resources through a good management
FINANCIAL MANAGEMENT
ROLES OF FINANCIAL MANAGER
select projects that create value
making smart financing decisions
FUNCTIONS OF A FM
-dividend policy
-financing decisions
-investment decisons
DECISIONs
CAPITAL BUDGETING (day-to-day activity)
CAPITAL STRUCTURE (long-term financing)
WORKING CAPITAL MANAGEMENT (long-term invest')
GOALS
max of risk
max of sales
max of profits
max of share price
FINANCIAL MARKET
MARKET
PRIMARY MARKET
SECONDARY MARKETS
FORMS OF BUSINESSS ORG.
SOLE PROPRIETORSHIPS (personally responsible for all the debts)
PARTNERSHIP (profits & loss sharing by mutual agreement)
CORPORATIONS (legal functions separate from owner)
SOURCE OF FINANCE
BORROWING
long-term debt
short-term debt
CAPITAL
common equity
retained earning
issues new share
preferred stock