Finanças
12
Finanças Sept 19, 2006
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Finanças. Sept 19, 2006. Topics. Practical information about this course What is this course about?. About the Course. Objective: to introduce basic principles of finance and practical tools for financial decisions. Language: English - PowerPoint PPT Presentation
Transcript of Finanças
Finanças
Sept 19, 2006
Topics Practical information about this course What is this course about?
About the Course Objective: to introduce basic principles of finance and
practical tools for financial decisions. Language: English Text book: Corporate Finance, Ross, Westerfield and
Jaffe, 7th edition Syllabus and notes online:
http://docentes.fe.unl.pt/~qdai/teaching/finance_I.htmPassword: finance
Webpage of exercise seminars: http://docentes.fe.unl.pt/~dpm/
Office hour: Thursday 13-15, MBA building room 302. Email: [email protected]
Evaluation Mid-term exam: November 14 (optional, 25%) Case study:
3-4 students per group. The groups have to be registered by October 3rd with
the teaching assistants. Anyone who fails to register has to do the case study by himself.
Three case study reports (8% each): due on Oct 26, Nov 21 and Dec 7.
Final exam Jan 17 Feb 2
What is this course about? The firm What do we learn from this course?
The balance sheet model of corporate finance The role of a financial manager
What is a financial manager The role
Business organization
Introduction to the Firm Purpose of the firm: value creation
Does value maximization justify unethical behavior
Enron WorldCom
Two aspects of corporate finance: Raise funding Investment
Balance sheet model of corporate finance
Balance sheet modelCurrent AssetsInventory, raw material, cash
Fixed AssetsTangible assets: buildings, machineryIntangible assets: patent, trademark
Short-term liabilitiesLoans and other obligations that have to be paid in within one year
Long-term liabilities
EquityResidual claim on the debt
Capital Structure: V=B+S
Capital budegting decision, a.k.a. Investment decision
Financing decision: raising funds for investments & operation
Balance sheet modelCurrent AssetsInventory, raw material, cash
Fixed AssetsTangible assets: buildings, machineryIntangible assets: patent, trademark
Short-term liabilitiesLoans and other obligations that have to be paid in within one year
Long-term liabilities
EquityResidual claim on the debt
Operating cash flow management
Net working capital
Who is The Financial Manager?
Chief Financial Officer
Treasurer Controller
Financial policy and planning
Cash management, raising funds, bank relationships
Taxes, accounting, and financial reporting
Financial
Manager
Firm's
operations Investors
(1) Cash raised from investors
(1)
(2) Cash invested in firm
(2)
(3) Cash generated by operations
(3)
(4a) Cash reinvested
(4a)
(4b) Cash returned to investors
(4b)
The Role of The Financial Manager
Real assets
Business Organization Sole proprietorship Partnership Corporation
Sole Proprietorship
Partnership Corporation
Who owns the business?
The manager
Partners Shareholders
Are managers and owners separate?
No No Usually
What is the owner’s liability?
Unlimited Unlimited Limited
Are the owner & business taxed separately?
No No Yes
Business Organization
