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SOLUTION MANUAL For Corporate Finance 13th Edition ByStephen Ross, Stephen A. Ross, Randolph W.. Westerfield, Jeffrey F.. Jaffe, Bradford D.. Jordan | All Chapters | Newest Version 2024 €12,58   Ajouter au panier

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SOLUTION MANUAL For Corporate Finance 13th Edition ByStephen Ross, Stephen A. Ross, Randolph W.. Westerfield, Jeffrey F.. Jaffe, Bradford D.. Jordan | All Chapters | Newest Version 2024

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SOLUTION MANUAL For Corporate Finance 13th Edition ByStephen Ross, Stephen A. Ross, Randolph W.. Westerfield, Jeffrey F.. Jaffe, Bradford D.. Jordan | All Chapters | Newest Version 2024 Chapter 01 - Introduction to Corporate Finance 1-1 Copyright © 2023 McGraw-Hill Education. All rights reserve...

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Chapter 01 - Introduction to Corporate Finance



Chapter 1
INTRODUCTION TO CORPORATE FINANCE
SLIDES

1.1 Chapter 1: Introduction to Corporate Finance
1.2 Key Concepts and Skills
1.3 Chapter Outline
1.4 1.1 What Is Corporate Finance?
1.5 The Balance Sheet Model of the Firm
1.6 The Capital Budgeting Decision
1.7 The Capital Structure Decision
1.8 Short-Term Asset Management
1.9 The Financial Manager
1.10 Hypothetical Organization Chart
1.11 1.2 The Corporate Firm
1.12 Forms of Business Organization
1.13 A Comparison of Corporations and Partnerships
1.14 1.3 The Importance of Cash Flow
1.15 1.4 The Goal of Financial Management
1.16 1.5 The Agency Problem and Control of the Corporation
1.17 Management Goals
1.18 Managing Managers
1.19 1.6 Regulation
1.20 Quick Quiz
1.21 End of Main Content
1.22 Accessibility Content: Text Alternatives for Images
1.23 Short-Term Asset Management Text Alternative
1.24 Hypothetical Organization Chart Text Alternative
1.25 1.3 The Importance of Cash Flows Text Alternative


CHAPTER WEB SITES
Section Web Address
1.1 CFO: www.cfo.com
1.2 ―Launch your Business‖: www.sba.gov
1.4 Business Ethics magazine: www.business-ethics.com
1.6 Sarbanes-Oxley survey: www.protiviti.com/US-
en/insights/sox-compliance-survey


CHAPTER ORGANIZATION

1.1 What Is Corporate Finance?
The Balance Sheet Model of the Firm
1-1
Copyright © 2023 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.

,Chapter 01 - Introduction to Corporate Finance


The Financial Manager

1.2 The Corporate Firm
The Sole Proprietorship
The Partnership
The Corporation
A Corporation by Another Name…

1.3 The Importance of Cash Flows
Identification of Cash Flows
Timing of Cash Flows
Risk of Cash Flows

1.4 The Goal of Financial Management
Possible Goals
The Goal of the Financial Manager
A More General Goal

1.5 The Agency Problem and Control of the Corporation
Agency Relationships
Management Goals
Do Managers Act in the Stockholders‘ Interests?
Stakeholders

1.6 Regulation
The Securities Act of 1933 and the Securities Exchange Act of 1934
Sarbanes-Oxley


ANNOTATED CHAPTER OUTLINE

Slide 1.1 Chapter 1: Introduction to Corporate Finance
Slide 1.2 Key Concepts and Skills
Slide 1.3 Chapter Outline
PowerPoint Note: If there is a slide that you do not wish to include in your
presentation, choose to hide the slide under the “Slide Show” menu, instead of
deleting it. If you decide that you would like to use that slide at a later date, you
can just unhide it.

PowerPoint Note: Be sure to check out the notes that accompany some of the
slides on the “Notes Pages” within PowerPoint.


1-2
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.

,Chapter 01 - Introduction to Corporate Finance


1.1. What is Corporate Finance?

Slide 1.4 1.1 What Is Corporate Finance?

Corporate finance addresses several important questions:

1. In what long-term assets should the firm invest? (Capital
budgeting)
2. How should the firm raise funds for required capital expenditures?
(Capital structure)
3. How should short-term operating cash flows be managed? (Net
working capital)

A. The Balance Sheet Model of the Firm

Slide 1.5 The Balance Sheet Model of the Firm

The Balance Sheet presents a picture of the firm at a point in time,
and it provides a model by which to address the three basic
questions that corporate finance managers must answer.

Slide 1.6 The Capital Budgeting Decision

1. Long-term investment decisions determine the level of
fixed assets.

Slide 1.7 The Capital Structure Decision
2. Financing policy determines the liabilities and equity side
of the balance sheet.

Slide 1.8 Short-Term Asset Management

3. Short-term asset management choices (e.g., conservative
versus aggressive) affect the level of net working capital.

B. The Financial Manager

Slide 1.9 The Financial Manager




1-3
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.

, Chapter 01 - Introduction to Corporate Finance


Financial Managers should make decisions that increase firm
value, which effectively involves three primary categories of
financial decisions.

1. Capital budgeting – process of planning and managing a
firm‘s investments in fixed assets. The key concerns are the
size, timing, and risk of future cash flows.

2. Capital structure – mix of debt (borrowing) and equity
(ownership interest) used by a firm. What are the least
expensive sources of funds? Is there an optimal mix of debt
and equity? When and where should the firm raise funds?

3. Working capital management – managing short-term assets
and liabilities. How much inventory should the firm carry?
What credit policy is best? Where will we get our short-
term loans?

These broad categories, however, can be summarized with two
concrete responsibilities:

a. Selecting value creating projects
b. Making smart financing decisions

Slide 1.10 Hypothetical Organization Chart
The Chief Financial Officer (CFO) or Vice-President of Finance
coordinates the activities of the treasurer and the controller.

The controller handles cost and financial accounting, taxes, and
information systems (i.e., data processing).

The treasurer handles cash and credit management, financial
planning, and capital expenditures.

Video Note: The Role of the Chief Financial Officer - This video
looks at the changing role of the CFO.

1.2. The Corporate Firm

Slide 1.11 1.2 The Corporate Firm



1-4
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.

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