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Lesson 1 Introduction to Financial Management
Key Concepts and Skills ,[object Object],[object Object],[object Object],[object Object],[object Object]
Career opportunities in finance ,[object Object],[object Object],[object Object],[object Object]
The role of the Financial Manager ,[object Object],[object Object],[object Object],[object Object]
Balance Sheet Model of the Firm ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Role of The Financial Manager ,[object Object],[object Object],[object Object]
The Capital Budgeting Decision ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Role of The Financial Manager ,[object Object],[object Object],[object Object],[object Object]
The Capital Structure Decision ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Short-Term Asset Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Role of The Financial Manager Financial Manager Firm's operations Investors Real assets (1 ) Cash raised from investors (1) (2)  Cash invested in firm (2) (3)  Cash generated by operations (3) (4a ) Cash reinvested (4a) (4b)  Cash returned to investors (4b)
The financial manager’s responsibilities ,[object Object],[object Object],[object Object],[object Object]
What is corporation? ,[object Object],[object Object],[object Object],[object Object],[object Object]
What is a Corporation? ,[object Object],[object Object],[object Object],[object Object]
Organizing a Business ,[object Object],[object Object],[object Object],[object Object],[object Object]
Organizing a Business
Corporate Structure Sole Proprietorships Corporations Partnerships Limited Liability Corporate tax on profits + Personal tax on dividends  Unlimited Liability Personal tax on profits
The role of the financial manager ,[object Object],[object Object],[object Object]
Hypothetical Organization Chart ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Who is The Financial Manager? Chief Financial Officer Treasurer Controller
Goals of The Corporation ,[object Object],[object Object],[object Object],[object Object]
Goals of The Corporation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Financial Markets Primary  Markets Secondary  Markets OTC Markets Money
Financial markets ,[object Object],[object Object]
Financial Markets ,[object Object],[object Object],[object Object],[object Object]
Other financial markets ,[object Object],[object Object],[object Object]
Financial Markets Company Issue Debt Cash Investors
Financial Markets Company Intermediary Investor Funds Funds Banks Insurance Cos. Brokerage Firms Obligations Depositors Policyholders Investors Obligations
Financial Markets Banks Depositors $2.5 mil Cash Loan Deposits Company Intermediary Investor
Financial Markets Insurance Company Policyholders $250 mil Cash Loan Sell policies Issue Stock Company Intermediary Investor
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Slides-1. Financial Management. Lecture 1

  • 1. Lesson 1 Introduction to Financial Management
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. The Role of The Financial Manager Financial Manager Firm's operations Investors Real assets (1 ) Cash raised from investors (1) (2) Cash invested in firm (2) (3) Cash generated by operations (3) (4a ) Cash reinvested (4a) (4b) Cash returned to investors (4b)
  • 12.
  • 13.
  • 14.
  • 15.
  • 17. Corporate Structure Sole Proprietorships Corporations Partnerships Limited Liability Corporate tax on profits + Personal tax on dividends Unlimited Liability Personal tax on profits
  • 18.
  • 19.
  • 20. Who is The Financial Manager? Chief Financial Officer Treasurer Controller
  • 21.
  • 22.
  • 23. Financial Markets Primary Markets Secondary Markets OTC Markets Money
  • 24.
  • 25.
  • 26.
  • 27. Financial Markets Company Issue Debt Cash Investors
  • 28. Financial Markets Company Intermediary Investor Funds Funds Banks Insurance Cos. Brokerage Firms Obligations Depositors Policyholders Investors Obligations
  • 29. Financial Markets Banks Depositors $2.5 mil Cash Loan Deposits Company Intermediary Investor
  • 30. Financial Markets Insurance Company Policyholders $250 mil Cash Loan Sell policies Issue Stock Company Intermediary Investor

Editor's Notes

  1. It is sometimes helpful to relate corporate decisions to individual circumstances. For example, consider discussing how individuals choose to buy cars or homes and how this decision would affect a personal balance sheet.
  2. 6 5 5 5 5 5
  3. 6 5 5 5 5 5
  4. 11 10 6 6 6 6
  5. 4 3 3 3 3 3
  6. 4 3 3 3 3 3
  7. 5 4 4 4 4 4
  8. 19
  9. 17
  10. 18
  11. 6 5 5 5 5 5
  12. 12 11 7 7 7 7
  13. 16 15 8 8 8 8
  14. 16 15 8 8 8 8
  15. 16 15 8 8 8 8