The Cost of Money Money is not free What is Finance? Authors say: L. J. Gitman quoted as, "Finance can be defined as the art and science of managing money. Finance is concerned with the process, institutions, markets and instruments involved in the transfer of money among and between individuals, businesses and governments." E.W. Walker stated as, "Activities of a business concern relevant to financial planning, coordinating, control and their application is called finance." Schall & Hally said that "Finance is a body of facts, principles and theories dealing with raising and using of money by individuals, businesses and governments. Others say: https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-financedefinition/ Money is not free Types of Finance Types of finance: https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-financedefinition/ Corporate Finance Business Finance Money is not free Forms of Business Forms of Business: Book# page# 10 https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-financedefinition/ • Public Limited company • Managed by Managers • Mangers appointed by Owners(shareholders.). Money is not free Organogram of the Corporation: Money is not free Organogram of the Corporation: Money is not free Organogram of the Corporation: • What does a Finance Manager do: • Page : https://www.roberthalf.com.au/employers/finance-accounting/finance-manager-jobs Money is not free Money is not free Two friends planning How will the coffee shop look like? Fixed Asset Coffee Machine Table Furniture and Fixtures Wiring Interior Decoration Current Asset coffee sugar Milk Powder Light Money is not free Two friends planning From where the money will come? Debt Equity Money is not free Factors Affecting The Cost of Money 3. when the shop started – how to manage, fixing the price, selling method. 4. how are they going to share the return. 1. what assets: capital budgeting 2. Capital structure: How much debt and how much equity.. • decisions reagrding the invest of fixed assets. • How much debt and how much equity.. Working Capital Management Management of Current assets and Current Liabilities • Management of Current assets and Current Liabilities 4. how to share the return Dividend policy decision • How to share the earnings Money is not free Activities: Money is not free Activities: Money is not free Activities: Money is not free Activities: Money is not free Activities: Money is not free Activities:
