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Financial Management, Benjamin - Coggle Diagram
Financial Management
Financing Alternatives: Short-Term Debt
Trade Credit
Secured Loans
Unsecured Loans
Compensating Balance
Line of Credit
Commercial Paper
Financing Alternatives: Factors to Consider
Debt Financing
Equity Financing
Length of Term
Short-term financing
Long-term financing
Interest Rate
Prime interest rate
Opportunity cost
Leverage
Capital structure
Role of Financial Management
Financial Management
Fundamental Concepts
Balancing short-term and long-term demands
Balancing potential risks and potential rewards
Balancing leverage and flexibility
Risk/Return Trade-Off
Financial Plan
Monitoring Cash Flow
Accounts payable
Accounts receivable
Managing inventory
The Budgeting Process
Budgeting Changllenges
Every company has a limited amount of money to spend
Revenues and costs are often difficult to predict
It's not always clear how much should be spent
Types of Budgets
Start-up budget
Operating budget (master budget)
Capital budget
Capital investment
Project budget
Hedging
Zero-based Budgeting
Financing Alternatives: Equity
Private Equity
Public Stock Offerings
Preparing the IPO
Registering the IPO
Selling the IPO
Underwriter
Prospectus
Financing Alternatives: Long-term Debt
Sources
Long-term loans
Character
Capacity
Capital
Conditions
Collateral
Leases
Corporate bond
Bonds
Secured bonds
Debentures
Convertible bonds
Benjamin