Chapter 1 Corporate Governance
Chapter 1 Chapter 1 Corporate Governance Corporate Governance
What is Finance Finance: the study of markets and instruments that deal with cash flow over time Corporate Finance Investment Banking ■ Insurance ■ Real estate Public Finance slide 1
slide 1 What is Finance What is Finance Finance: the study of markets and instruments that deal with cash flow over time Corporate Finance Investment Banking Insurance Real estate Public Finance
The balance Sheet Current Liabilities Current Assets Long-term debt Fixed Assets Shareholders'equity slide 2
slide 2 The balance Sheet The balance Sheet Current Assets Current Liabilities Fixed Assets Long-term debt Shareholders’ equity
Key Questions In what long-lived assets should the firm invest? --Capital budgeting and expenditure How can the firm raise cash for required capital expenditure? --Capital structure How should short-term operating cash flows be managed? --Net working capital slide 3
slide 3 Key Questions Key Questions In what long-lived assets should the firm invest? --Capital budgeting and expenditure How can the firm raise cash for required capital expenditure? --Capital structure How should short-term operating cash flows be managed? -- Net working capital
Primarily a Corporate Finance Point of View SAVERS/INVESTORS Investment The Corporate Management Financial Corporation Financial Markets Manager -Real Assets -financial assets slide 4
slide 4 Primarily a Corporate Finance Point of View Primarily a Corporate Finance Point of View SAVERS/INVESTORS The Corporation -Real Assets Financial Markets -financial assets Investment Corporate Management Financial Manager