Tuesday, February 17, 2009

Corporate Finance chapter 1

1. What is CF..?
= Is an area of financing dealing with the financial decision corporations make and the tools and analysis used to make these decision

2. Goal = to minimize corporate value while managing firms financial risk

3. The discipline can be divided into long term (capital investment-equity debt) and short term investment (working capital management-current liabilities and current assets).

4. Financial risk management is the proses of measuring risk which is developing, and implement strategic to manage risk.

5. The Financial manager are the treasurer (responsible to handling cash flow, managing capital expenditure decision, and making financial plans), the controller (responsible to handles the accounting function, manage taxes, cost and financial account in information system), and financial manager (responsible to create value from the firms capital budgeting, financial and net working capital activities).

6. The entities of corporate firm is the sole proprietorship, partnership, and corporation.

7. The goal of financial management is possible to survive, avoid financial distress and bankruptcy, beat the competition, maximum sales or market share, minimum cost but maximum the profit, and maintain steady earnings growth.

8. The main goal is to maximum the current value per share of the existing stock.

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