week four assignment

Introduction to Financial Management
(Chapters 1, 2, 3, 4)

Part 4

Capital Structure and Dividend Policy
(Chapters 15, 16)

Part 2

Valuation of Financial Assets
(Chapters 5, 6, 7, 8, 9, 10)

Part 5

Liquidity Management and Special Topics in Finance
(Chapters 17, 18, 19, 20)

Part 3

Capital Budgeting (Chapters 11, 12, 13, 14)

C H A P T E R

1

Part 1

Getting Started
Principles of Finance
Chapter Outline
1.1

Finance: An Overview (pgs. 4–5)

1.2

Three Types of Business
Organizations (pgs. 5–9)

1.3

The Goal of the Financial
Manager (pgs. 9–11)

1.4

The Four Basic Principles of Finance (pgs. 11–13)

Objective 1. Understand the importance of finance in your personal and professional lives and identify the three primary business decisions that financial managers make.
Objective 2. Identify the key differences between the three major legal forms of business.

Objective 3. Understand the role of the financial manager within the firm and the goal for making financial choices.

Objective 4. Explain the four principles of finance that form the basis of financial management for both businesses and individuals.

ISBN 1-256-14785-0
Financial Management: Principles and Applications, Eleventh Edition, by Sheridan Titman, John D. Martin, and Arthur J. Keown. Published by Prentice Hall.
Copyright © 2011 by Pearson Education, Inc.

Principles

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ISBN 1-256-14785-0

This book examines a wide range of financial decisions that people make in their business lives as well as in their personal lives.
In this chapter, we lay a foundation for the entire book by describing the boundaries of the study of finance, the different ways that businesses are organized, and the role that the financial manager plays within the firm. We also address some of the

ethical dilemmas that the financial manager must face daily. Finally, we take an in-depth look at the