Finance

Principles of Corpo respect Finance
Brealey and Myers

u

Sixth Edition

Finance and the fiscal Manager

Chapter 1

2

Topics Covered
w What Is A Corporation?
w The Role of The financial Manager
w Who Is The pecuniary Manager?
w Separation of Ownership and Management
w Financial Markets

3

Corporate Structure
Sole Proprietorships

Unlimited Liability
individual(prenominal) tax on profits

Partnerships

Limited Liability
Corporations

Corporate tax on profits +
Personal tax on dividends

4

Role of The Financial Manager
(2)

(1)

Financial
manager

Firms
operations

(4a)

(4b)

(3)
(1) notes elevated from investors
(2) Cash invested in firm
(3) Cash generated by operations
(4a) Cash reinvested
(4b) Cash returned to investors

Financial
markets

5

Who is The Financial Manager?
Chief Financial Officer

Treasurer

Comptroller

6

Ownership vs. Management
divagation in Information
w Stock prices and
returns
w Issues of shares and
other securities
w Dividends
w Financing

Different Objectives
w Managers vs.
stockholders
w Top mgmt vs.
operating(a) mgmt
w Stockholders vs.



banks
and lenders

7

Financial Markets
Money

Primary

OTC

Markets

Markets
Secondary
Markets

8

Financial Institutions
Company

Obligations

Funds

Intermediaries
Banks
Insurance Cos.
Brokerage Firms

9

Financial Institutions
Intermediaries

Obligations

Funds

Investors
Depositors
Policyholders
Investors

Principles of Corporate Finance
Brealey and Myers

u

Sixth Edition

confront Value and The Opportunity
Cost of Capital

Chapter 2

11

Topics Covered
w put in Value
w Net Present Value
w NPV Rule
w ROR Rule
w Opportunity Cost of Capital
w Managers and the Interests of Shareholders

12

Present Value
Present Value

Discount Factor

Value today of
a future cash
flow.

Present value of
a $1 future
payment.
Discount Rate
Interest rate used...If you want to get a full essay, order it on our website: Orderessay



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