Management and Policy: Corporate Finance
AFIN858 Financial
Management and Policy
Week 1 S1 2014
“INTRODUCTION TO
CORPORATE FINANCE”
“Where is This Slide From”?
• Most of the slides we use in this unit are provided by the
Publisher of the required text “…as down-loaded from
Connect…”
• Sometimes we modify slides by adding or removing content. Other times we use slides from other sources.
Occasionally we ‘make’ slides.
• Note that lecture slides are not numbered sequentially.
• Slides are identified in the lower RHS corner.
• Identifier “1-3” refers to text chapter 1 slide 3.
• Identifiers vary and can look like: ‘Tab.3.12’;
‘p.113’; ‘Fig.11.42’; ‘Ex.14.7; ‘Example’ or
‘Poh (1991)’. And so on.
Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
• A slide without anFundamentals of Corporate ‘made’Ross et us. identifier is Finance 6e by by al.
PPTs to accompany
Learning Objectives Ch. 1
LO1.1 Understand the basic types of financial management decisions and the role of the financial manager.
LO1.2 Understand the goal of financial management.
LO1.3 Understand the financial implications of the different forms of business organisation.
LO1.4 Understand the conflicts of interest that can arise between managers and owners.
LO1.5 Explain and apply the two-period certainty model. Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
PPTs to accompany Fundamentals of Corporate Finance 6e by Ross et al.
1-3
What is Corporate Finance?
• Corporate finance attempts to answer the following three questions:
– What investments should the business take on?
THE INVESTMENT DECISION
– How can finance be obtained to pay for the required investments? THE FINANCE DECISION
– Should dividends be paid? If so, how much?
THE DIVIDEND DECISION
Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
PPTs to accompany Fundamentals of Corporate Finance 6e by Ross et al.
1-4
Balance Sheet Model of the Firm
Copyright © 2014 McGraw-Hill Education
Management and Policy
Week 1 S1 2014
“INTRODUCTION TO
CORPORATE FINANCE”
“Where is This Slide From”?
• Most of the slides we use in this unit are provided by the
Publisher of the required text “…as down-loaded from
Connect…”
• Sometimes we modify slides by adding or removing content. Other times we use slides from other sources.
Occasionally we ‘make’ slides.
• Note that lecture slides are not numbered sequentially.
• Slides are identified in the lower RHS corner.
• Identifier “1-3” refers to text chapter 1 slide 3.
• Identifiers vary and can look like: ‘Tab.3.12’;
‘p.113’; ‘Fig.11.42’; ‘Ex.14.7; ‘Example’ or
‘Poh (1991)’. And so on.
Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
• A slide without anFundamentals of Corporate ‘made’Ross et us. identifier is Finance 6e by by al.
PPTs to accompany
Learning Objectives Ch. 1
LO1.1 Understand the basic types of financial management decisions and the role of the financial manager.
LO1.2 Understand the goal of financial management.
LO1.3 Understand the financial implications of the different forms of business organisation.
LO1.4 Understand the conflicts of interest that can arise between managers and owners.
LO1.5 Explain and apply the two-period certainty model. Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
PPTs to accompany Fundamentals of Corporate Finance 6e by Ross et al.
1-3
What is Corporate Finance?
• Corporate finance attempts to answer the following three questions:
– What investments should the business take on?
THE INVESTMENT DECISION
– How can finance be obtained to pay for the required investments? THE FINANCE DECISION
– Should dividends be paid? If so, how much?
THE DIVIDEND DECISION
Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd
PPTs to accompany Fundamentals of Corporate Finance 6e by Ross et al.
1-4
Balance Sheet Model of the Firm
Copyright © 2014 McGraw-Hill Education