Chapter
1
•Introduction to Corporate
Finance
McGraw-Hill/Irwin
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 01 – Index of Sample
Problems
• There are no problems for this Chapter
Corporate finance
• What is corporate finance? What is the role of
financial manager?
• What is the goal of financial management?
• Financial management environment.
• Corporate form of organization.
• Conflicts within corporation.
Jobs of financial manager
• What long-run investment should take on?
Capital Budgeting
• How to get long-run finance to pay for your
investment?
Capital structure
• Management of everyday financial activities.
Working capital management
Forms of business organization
• Sole Proprietorship
• Partnership
• Corporation
Goal of financial management
• Maximize the current value per share of
existing stock
• Maximize the market value of the existing
owner’s equity
Agency problem
• Agency cost
• Managerial compensation
• Control of firm
Financial markets
• Cash flows to and from the firm
Chapter
1
•End of Chapter 1
McGraw-Hill/Irwin
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.