中山大学公司理财课件1

•A•••••QQ:178600597•630——9301208•••••WhatisCorporateFinance?CorporateFinanceaddressesthefollowingthreequestions:1.Whatlong-terminvestmentsshouldthefirmengagein?2.Howcanthefirmraisethemoneyfortherequiredinvestments?3.Howmuchshort-termcashflowdoesacompanyneedtopayitsbills?TheBalance-SheetModeloftheFirmCurrentAssetsFixedAssets1Tangible2IntangibleTotalValueofAssets:Shareholders’EquityCurrentLiabilitiesLong-TermDebtTotalFirmValuetoInvestors:TheBalance-SheetModeloftheFirmCurrentAssetsFixedAssets1Tangible2IntangibleShareholders’EquityCurrentLiabilitiesLong-TermDebtWhatlong-terminvestmentsshouldthefirmengagein?TheCapitalBudgetingDecisionTheBalance-SheetModeloftheFirmHowcanthefirmraisethemoneyfortherequiredinvestments?TheCapitalStructureDecisionCurrentAssetsFixedAssets1Tangible2IntangibleShareholders’EquityCurrentLiabilitiesLong-TermDebtTheBalance-SheetModeloftheFirmHowmuchshort-termcashflowdoesacompanyneedtopayitsbills?TheNetWorkingCapitalInvestmentDecisionNetWorkingCapitalShareholders’EquityCurrentLiabilitiesLong-TermDebtCurrentAssetsFixedAssets1Tangible2IntangibleCapitalStructureThevalueofthefirmcanbethoughtofasapie.Thegoalofthemanageristoincreasethesizeofthepie.TheCapitalStructuredecisioncanbeviewedashowbesttosliceupathepie.Ifhowyouslicethepieaffectsthesizeofthepie,thenthecapitalstructuredecisionmatters.50%Debt50%Equity25%Debt75%Equity70%Debt30%Equity•••••2429788397767122173020406080100120UnitedStatesUnitedKingdomFranceGermanyJapan%ofresponsesTheShareholdersAllStakeholders**Surveyof378managersfrom5countriesFinancialMarkets•PrimaryMarket–Whenacorporationissuessecurities,cashflowsfrominvestorstothefirm.–Usuallyanunderwriterisinvolved•SecondaryMarkets–Involvethesaleof“used”securitiesfromoneinvestortoanother.–Securitiesmaybeexchangetradedortradeover-the-counterinadealermarket.FinancialMarketsFirmsInvestorsSecondaryMarketmoneysecuritiesSueBobStocksandBondsMoneyPrimaryMarketCashflowfromfirm(C)TheFirmandtheFinancialMarketsTaxes(D)FirmGovernmentFirmissuessecurities(A)Retainedcashflows(F)Investsinassets(B)Dividendsanddebtpayments(E)CurrentassetsFixedassetsFinancialmarketsShort-termdebtLong-termdebtEquitysharesUltimately,thefirmmustbeacashgeneratingactivity.Thecashflowsfromthefirmmustexceedthecashflowsfromthefinancialmarkets.•••CEOCFOChairmanoftheBoardandChiefExecutiveOfficer(CEO)BoardofDirectorsPresidentandChiefOperatingOfficer(COO)VicePresidentandChiefFinancialOfficer(CFO)TreasurerControllerCashManagerCapitalExpendituresCreditManagerFinancialPlanningTaxManagerFinancialAccountingCostAccountingDataProcessingSeparationofOwnershipandControlBoardofDirectorsManagementAssetsDebtEquityShareholdersDebtholdersTheFinancialManagerTocreatevalue,thefinancialmanagershould:1.Trytomakesmartinvestmentdecisions.2.Trytomakesmartfinancingdecisions.•SourcesofInformationUS•Annualreports•WallStreetJournal•Internet–NYSE()–Nasdaq()–Text()•SEC–EDGAR–10K&10QreportsTheBalanceSheet•Anaccountant’ssnapshotofthefirm’saccountingvalueasofaparticulardate.•TheBalanceSheetIdentityis:AssetsLiabilities+Stockholder’sEquity•Whenanalyzingabalancesheet,thefinancialmanagershouldbeawareofthreeconcerns:accountingliquidity,debtversusequity,andvalueversuscost.BalanceSheetAnalysis•Whenanalyzingabalancesheet,thefinancialmanagershouldbeawareofthreeconcerns:1.Accountingliquidity2.Debtversusequity3.ValueversuscostAccountingLiquidity•Referstotheeaseandquicknesswithwhichassetscanbeconvertedtocash.•Currentassetsarethemostliquid.•Somefixedassetsareintangible.•Themoreliquidafirm’sassets,thelesslikelythefirmistoexperienceproblemsmeetingshort-termobligations.•Liquidassetsfrequentlyhavelowerratesofreturnthanfixedassets.DebtversusEquity•Generally,whenafirmborrowsitgivesthebondholdersfirstclaimonthefirm’scashflow.•Thusshareholder’sequityistheresidualdifferencebetweenassetsandliabilities.ValueversusCost•UnderGAAPauditedfinancialstatementsoffirmsintheU.S.carryassetsatcost.•Marketvalueisacompletelydifferentconcept.TheIncomeStatement•Theincomestatementmeasuresperformanceoveraspecificperiodoftime.•TheaccountingdefinitionofincomeisRevenue–ExpensesIncomeIncomeStatementAnalysis•Therearethreethingstokeepinmindwhenanalyzinganincomestatement:1.GAAP2.NonCashItems3.TimeandCostsNetWorkingCapitalNetWorkingCapitalCurrentAssets–CurrentLiabilities•NWCisusuallygrowingwiththefirm.FinancialCashFlow•Infinance,themostimportantitemthatcanbeextractedfromfinancialstatementsistheactualcashflowofthefirm.•Sincethereisnomagicinfinance,itmustbethecasethatthecashfromreceivedfromthefirm’sassetsmustequalthecashflowstothefirm’screditorsandstockholders.CF(A)CF(B)+CF(S)SummaryandConclusions•Financialstatementsprovideimportantinformationregardingthevalueofthefirm.•Youshouldkeepinmind:–Measuresofprofitabilitydonottakeriskortimingofcashflowsintoaccount.–Financialratiosarelinkedtooneanother.•••“=+”•“=—”••••–•••–••••••–/–/•–/–/–/–/•–/–/–/–/•–/–/–/–/•/–/–/–/–/–/–/•/•/•=/•Q=/––•·207100•,,,,,,,,;,,500-20000-40003500600045001000080002009•P58••••••(rrate)•••(FV:futurevalue)FV=PV(1+rn)FVPVrn=