seminar

Learning objectives

FINM 7401 Seminar 1:
Introduction to financial management Ethics in finance
Readings: Ross et al. Chapter 1

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
Ross, Essentials of Corporate Finance, 3e

1-1

Discuss the basic types of financial management decisions and the role of the financial manager.
Identify the goal of financial management.
Compare the financial implications of the different forms of business organisation
Describe the conflicts of interest that can arise between managers and owners.
Discuss the role ethics has to play in finance.

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
Ross, Essentials of Corporate Finance, 3e

Why study FINM7401?

Why study FINM7401?

Majors in finance

1-2

Majors in Marketing

The first course you will take of a suite of finance courses Later finance courses build on what you learn in this course

Majors in accounting
Accountant may have a dual accounting and finance function
Need to understand financial products to know how to account for them
Accounting and finance are very closely relateed
Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
Ross, Essentials of Corporate Finance, 3e

1-3

Need to understand how to value/budget for new projects Analysing costs/benefits of new projects

Majors in Management
Impossible to set strategy without understanding financial implications

You personally
Personal investments
Day-to-day cash flow management
Retirement planning
Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
Ross, Essentials of Corporate Finance, 3e

1-4

The four basic areas of finance

Investments

Finance is broad term, but the discipline can be divided into a number of sub components:

Working with financial assets such as shares and bonds
Value of financial assets
Risk versus return and asset allocation
Job opportunities

Investments