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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