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1、会计学1英文版公司理财英文版公司理财chapter12Chapter 1The Corporation and the Financial Manager第1页/共42页3Objectives1.1.Give examples of the investment and financing Give examples of the investment and financing decisions that financial managers make,and explain the decisions that financial managers make,and explain th
2、e responsibilities of the CFO,treasurer,and controllerresponsibilities of the CFO,treasurer,and controller2.2.Cite some of the advantages and disadvantages of Cite some of the advantages and disadvantages of organizing a business as a corporationorganizing a business as a corporation3.3.Explain why
3、maximizing market value is the logical Explain why maximizing market value is the logical financial goal for the corporationfinancial goal for the corporation4.4.Understand why conflicts of interest arise,especially in Understand why conflicts of interest arise,especially in large,public corporation
4、slarge,public corporations5.5.Explain how corporations mitigate conflicts and Explain how corporations mitigate conflicts and encourage ethical behaviorencourage ethical behavior第2页/共42页4Contentn nInvestment and financing decisionsn nWhat is a corporation?n nWho is the financial manager?n nGoals of
5、the corporation第3页/共42页5Investment decision:投资决策Financing decision:筹资决策Capital budegting decision:资本预算决策Tangible assets:有形资产Intangible assets:无形资产Debt financing:债务资金、债务筹资Equity financing:权益资金、权益筹资Capital structure:资本结构第4页/共42页6What is finance?n nFinance can be defined as the art and science of manag
6、ing money.n nCorporations face two broad financial questions:What investments should the firm make?And how should it pay for those investments?The first question involves spending money;the second involves raising it.Making good investment and financing decisions is the chief task of the financial m
7、anager.第5页/共42页7The Investment Decision n nInvestment decisionInvestment decision /capital budgeting decision/capital budgeting decision:decision to invest in tangible or intangible:decision to invest in tangible or intangible assetsassetsInvestments in automobile plantInvestments in research and de
8、velopment(R&D)第6页/共42页8Balance Sheet Model of the FirmCurrent AssetsFixed Assets1 Tangible 2 IntangibleTotal Value of Assets:Shareholders EquityCurrent LiabilitiesLong-Term DebtTotal Firm Value to Investors:第7页/共42页9The Investment DecisionCurrent AssetsFixed Assets1 Tangible 2 IntangibleShareholders
9、 EquityCurrent LiabilitiesLong-Term DebtWhat long-term investments should the firm choose?第8页/共42页10n nIf a projects value is greater than its required investment,then the project is attractive financiallyn nThe financial manager helps the firm to invest in projects that are worth more than they cos
10、t.第9页/共42页11The Financing Decision Financing decisionFinancing decision:the form and amount of financing of a firms:the form and amount of financing of a firms investmentinvestmentIssue shares of stockborrow from a bank第10页/共42页12The Financing DecisionHow should the firm raise funds for the selected
11、 investments?Current AssetsFixed Assets1 Tangible 2 IntangibleShareholders EquityCurrent LiabilitiesLong-Term Debt第11页/共42页13 The choice between debt and equity financing is often called the capital structure decisionn nHere“capital”refers to the firms sources of long-term financing.n nA firm that i
12、s seeking to raise long-term financing is said to be“raising capital.”第12页/共42页14Capital StructureThe value of the firm can be thought of as a pie.The goal of the manager is to increase the size of the pie.The Capital Structure decision can be viewed as how best to slice the pie.If how you slice the
13、 pie affects the size of the pie,then the capital structure decision matters.50%Debt50%Equity25%Debt75%Equity70%Debt30%Equity第13页/共42页15Short-Term Asset ManagementHow should short-term assets be managed and financed?Net Working CapitalShareholders EquityCurrent LiabilitiesLong-Term DebtCurrent Asset
14、sFixed Assets1 Tangible 2 Intangible第14页/共42页16Self-Test 1.1Self-Test 1.1n nAre the following capital budgeting or financing decisions?Hint:In one case the answer is“both”a.a.Intel decides to spend$1 billion to develop a new microprocessorIntel decides to spend$1 billion to develop a new microproces
15、sorb.b.Volkswagen borrows 350 million euros from Deutsche BankVolkswagen borrows 350 million euros from Deutsche Bankc.c.BP(BP(British Petroleum)British Petroleum)constructs a pipeline to bring natural gas constructs a pipeline to bring natural gas onshore from a production platform in the Gulf of M
16、exicoonshore from a production platform in the Gulf of Mexicod.d.Budweiser spends 200 million euros to launch a new brand of beer in Budweiser spends 200 million euros to launch a new brand of beer in European marketsEuropean marketse.e.Pfizer issues new shares to buy a small biotech company Pfizer
17、issues new shares to buy a small biotech company 第15页/共42页17Financing Financing and investment and investment decisions are decisions are separated andseparated and connectedconnectedn nThe amount The amount of investment determines the amount of financing that has to be raisedof investment determin
18、es the amount of financing that has to be raisedn n The investors who contribute financing today expect a return on that investment in The investors who contribute financing today expect a return on that investment in the futurethe futuren n Thus,the investments that the firm makes today have to gen
19、erate future returns for Thus,the investments that the firm makes today have to generate future returns for payout to investorspayout to investors第16页/共42页18n nTo carry on business,corporations need an almost endless variety of To carry on business,corporations need an almost endless variety of real
20、 assetsreal assets.n nMany of these assets are tangible,such as machinery,factories,and offices;others are Many of these assets are tangible,such as machinery,factories,and offices;others are intangible,such as technical expertise,trademarks,and patents.All of them need to be intangible,such as tech
21、nical expertise,trademarks,and patents.All of them need to be paid for.paid for.n nTo obtain the necessary money,the corporation sells claims on its real assets and on To obtain the necessary money,the corporation sells claims on its real assets and on the cash those assets will generate.These claim
22、s are called the cash those assets will generate.These claims are called financial assetsfinancial assets or or securities.securities.第17页/共42页19Flow of cash between financial markets and the firms operations.Flow of cash between financial markets and the firms operations.Flow of cash between financ
23、ial markets and the firms operations.Flow of cash between financial markets and the firms operations.Key:Key:(1)Cash raised by selling financial assets to investors;(1)Cash raised by selling financial assets to investors;(2)cash invested in the firm(2)cash invested in the firm s operations and used
24、to purchase s operations and used to purchase real assets;real assets;(3)cash generated by the firm(3)cash generated by the firm s operations;s operations;(4(4a a)cash reinvested;)cash reinvested;(4(4b b)cash returned to investors.)cash returned to investors.第18页/共42页20nUltimately,the firm must be a
25、 cash generating activity.nThe cash flows from the firm must exceed the cash flows from the financial markets第19页/共42页21Self-Test 1.2Self-Test 1.2n nWhich of the following are financial assets,and which are real assets?Which of the following are financial assets,and which are real assets?a.a.A paten
26、tA patentb.b.A share of stock issued by Bank of New YorkA share of stock issued by Bank of New Yorkc.c.A blast furnace in a steel-making factoryA blast furnace in a steel-making factoryd.d.A mortgage loan taken out to help pay for a new homeA mortgage loan taken out to help pay for a new homee.e.Aft
27、er a successful advertising campaign,potential customers believe that your brand of After a successful advertising campaign,potential customers believe that your brand of potato chips is extra crispypotato chips is extra crispyf.f.An IOU(I owe you)from your brother-in-lawAn IOU(I owe you)from your b
28、rother-in-law第20页/共42页22n nHow can we create value through investment and How can we create value through investment and financing decisions?financing decisions?第21页/共42页23Contentn nInvestment and financing decisionsn nWhat is a corporation?n nWho is the financial manager?n nGoals of the corporation
29、第22页/共42页24Corporation:公司Stockholder/shareholder:股东Legal entity:法人实体Limited liability:有限责任The separation of ownership and management:所有权与经营权相分离第23页/共42页25Corporationn nCorporationCorporation:business organized as a separate legal entity owned by stockholders:business organized as a separate legal en
30、tity owned by stockholdersn nA corporation is legally distinct from its owners,therefore confers limited liabilityA corporation is legally distinct from its owners,therefore confers limited liabilityn nThe separation of ownership and management is one distinctive featureThe separation of ownership a
31、nd management is one distinctive featuren nThere is an important tax drawbackThere is an important tax drawback（欠缺，弊端）（欠缺，弊端）:double taxation:double taxation第24页/共42页26n nThe separation of ownership and management has clear advantages.n nIt allows share ownership to change without interfering with t
32、he operation of the business.It allows the firm to hire professional managers.But it also brings problems if the managers and owners objectives differ.第25页/共42页27Forms of Business Organizationn nThe corporate form of business is the standard The corporate form of business is the standard method for
33、solving the problems encountered in method for solving the problems encountered in raising large amounts of cash.raising large amounts of cash.n nHowever,businesses can take other forms.However,businesses can take other forms.n nThe Sole ProprietorshipThe Sole Proprietorshipn nThe PartnershipThe Par
34、tnershipn nGeneral PartnershipGeneral Partnershipn nLimited PartnershipLimited Partnershipn nThe CorporationThe Corporation第26页/共42页28Contentn nInvestment and financing decisionsn nWhat is a corporation?n nWho is the financial manager?n nGoals of the corporation第27页/共42页29Chief Finanical Officer(CFO
35、):财务总监Treasurer:资金管理人员、司库人员Controller:会计主管人员financial statements:财务报表第28页/共42页30Financial managers in large corporations第29页/共42页31The Financial ManagerThe Financial Managers primary goal is to increase the value of the firm by:1.1.Selecting value creating projects2.2.Making smart financing decision
36、s第30页/共42页32n nP9P9 Self-Test 1.3Self-Test 1.3第31页/共42页33Contentn nInvestment and financing decisionsn nWhat is a corporation?n nWho is the financial manager?n nGoals of the corporation第32页/共42页34Value maximization:价值最大化Shareholders:股东Stakeholders:利益相关者Profit maximization:利润最大化Owner-manager:业主经理人Pri
37、ncipal：委托人Agency problem:代理问题Compensation plan:薪酬计划Board of directors:董事会Security analyst:证券分析师Creditor:债权人Takeover:接管第33页/共42页351.3 The Goal of Financial Management1.3 The Goal of Financial Managementn nWhat is the correct goal?n nMaximize profit?Maximize profit?n nMaximize market share?Maximize ma
38、rket share?n nMaximize shareholder wealth?Maximize shareholder wealth?第34页/共42页36Market value maximizationn nValue maximizationValue maximization is the natural financial goal of the firm is the natural financial goal of the firmn nMaximizing value maximizes the wealth of the firms owners,its shareh
39、oldersMaximizing value maximizes the wealth of the firms owners,its shareholdersn nShareholders can invest or consume that wealth as they wishShareholders can invest or consume that wealth as they wishProfit maximization第35页/共42页37Ethics and value maximizationn nModern finance does not condoneModern
40、 finance does not condone(宽恕宽恕)attempts to attempts to pump uppump up stock price by stock price by unethical meansunethical meansn nThe sureThe surest st route to maximum value starts with products and services that satisfy route to maximum value starts with products and services that satisfy custo
41、merscustomersn nA good reputation with customers,employees,and other stakeholders is also A good reputation with customers,employees,and other stakeholders is also important for the firms long-run profitability and valueimportant for the firms long-run profitability and value第36页/共42页38 The Agency R
42、elationshipn nPrincipal hires an agent to represent his/her interestn nStockholders(principals)hire managers(agents)to run the company第37页/共42页39Do managers really maximize value?Conflicts between shareholders and managers objectives create principalagent problems(Agency problem).Shareholders want m
43、anagement to increase the value of the firm,but managers may have their own axes to grind（个人动机，有私心）or nests to feather(中饱私囊）.第38页/共42页40Agency problemn nOwner-managers have no conflicts of interest in their management of the business.Owner-managers have no conflicts of interest in their management o
44、f the business.n nIn most large corporations,the managers are not the owners,and so managers may act In most large corporations,the managers are not the owners,and so managers may act in ways that are not in the best interests of shareholders.(in ways that are not in the best interests of shareholde
45、rs.(agency problemagency problem)Stakeholders第39页/共42页41Stakeholdersn nStakeholders are groups such a employees,customers,suppliers,creditors and others who have a direct economic link to the firm.第40页/共42页42How do corporations ensure that managers and stockholders interests coincide?n nCompensation
46、 plan:link the well-being of employees to that of the firmCompensation plan:link the well-being of employees to that of the firmn nMonitoring of management by the board of directors,security analysts,and creditorsMonitoring of management by the board of directors,security analysts,and creditorsn nThreat of takeoverThreat of takeover第41页/共42页