The document discusses various topics related to careers and opportunities in finance. It covers the roles and responsibilities of financial staff in businesses, as well as the role of finance departments. It also discusses different forms of business organization like sole proprietorships, partnerships, and corporations; and compares their advantages and disadvantages. Additionally, it covers financial goals of corporations like shareholder wealth maximization, and relationships between shareholders, managers, and creditors.

1. Career Opportunities in Finance Money and capital markets Investments Financial management

2. Responsibility of the Financial Staff Maximize stock value by Forecasting and planning Investment and financing decisions Coordination and control Transactions in the financial markets Managing risk

3. Role of Finance in a Typical Business Organization Treasurer VP Finance Board of Directors President Controller VP Sales VP Operations Inventory Managers Credit Manager Cost Accounting Capital Budgeting Director Financial Accounting Tax Departement

4. Financial management Issues of the New Millenium The effect of changing technology The Globalization of business

5. Alernative Forms of Business Organization Sole proprietorship Partnership Corporation

6. Sole proprietorship & Partnership Advantages Ease of formation Subject to few regulations No corporate income taxes Disadvantages Difficult to raise capital Unlimited liability Limited life

7. Corporation Advantages Unlimited life Easy transfer of ownership Limited liability Ease of raising capital Disadvantages Double taxation Cost of set up and report filing

8. Financial Goals of the Corporation The primary financial goal is shareholder wealth maximization stock price . Do firms have any responsibilities to society at large? Is stock price maximization good or bad for society? Should firms behave ethically?

9. Is stock price maximization the same as profit maximization? No, despite a generally high correlation among stock price,EPS and cash flow. Current Stock price relies upon current earnings, as well as future earnings and cash flow. Some actions may cause an increase in earnings, yet cause the stock price to decrease

10. Shareholders versus Managers Managers are naturally inclined to act in own best their interests. But the following factors affect managerial compensation behavior : Managers compensation plans Direct intervention by shareholders The threat of firing The threat of takeover

11. Shareholder versus Creditors Shareholder (through managers) could take action to maximize stock price that are detrimental to creditors In the long run , such actions will raise the cost of debt and ultimately lower stock price

12. Basic Valuation Model To estimate an asset’s value, one estimate the cash flow for each perio t (CFt),the life of the asset (n), and the appropriate discount rate (k)