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CHAPTER 1
Introduction to
corporate finance
Key concepts and skills
• Know the basic types of financial management decisions and the role of the
financial manager.
• Know the financial implications of the different forms of business
organization.
• Know the goal of financial management understand the conflicts of interest
that can arise between owners and managers.
• Understand the various types of financial markets.
Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)
Why finance is important?
•Because finance is spread in all aspects
of a business.
Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)
Corporate Finance.
• Some important Questions answered by using finance:
1. What long term investments should the firm take on?
2. Where will we get the long term financing to pay for the investments?
3. How will we manage the everyday activities of the firm?
Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)
Financial Manager
The top financial manger within a firm is usually the chief
financial officer (CFO)
• Financial managers try to answer some or all of these questions:
1. treasurer – oversees cash management, credit management, capital
expenditures and financial planning ( mostly forward-looking)
2. Controller – oversees taxes, cost accounting, financial accounting and data
processing ( mostly compiling historical results)
Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)
:
Function of financial manger
• Forecasting the financial requirement
• Financial planning
• Procurement of funds
• Allocation of funds
• Maintaining proper liquidity
• Dividend decision
Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)
Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)

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introduction to corporate finance, chapter 01.pptx

  • 2. Key concepts and skills • Know the basic types of financial management decisions and the role of the financial manager. • Know the financial implications of the different forms of business organization. • Know the goal of financial management understand the conflicts of interest that can arise between owners and managers. • Understand the various types of financial markets. Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)
  • 3. Why finance is important? •Because finance is spread in all aspects of a business. Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)
  • 4. Corporate Finance. • Some important Questions answered by using finance: 1. What long term investments should the firm take on? 2. Where will we get the long term financing to pay for the investments? 3. How will we manage the everyday activities of the firm? Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)
  • 5. Financial Manager The top financial manger within a firm is usually the chief financial officer (CFO) • Financial managers try to answer some or all of these questions: 1. treasurer – oversees cash management, credit management, capital expenditures and financial planning ( mostly forward-looking) 2. Controller – oversees taxes, cost accounting, financial accounting and data processing ( mostly compiling historical results) Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud) :
  • 6. Function of financial manger • Forecasting the financial requirement • Financial planning • Procurement of funds • Allocation of funds • Maintaining proper liquidity • Dividend decision Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)
  • 7. Prepared by Mr. Sahil Khan (Lecturer GCMS Jamrud)