Financial Management intro

1. Financial Management
Fifteenth Edition
Session 1
Introduction to
Financial
Management

2. Session Outline
1.1 Overview of Financial Markets
1.2 The Concept of Time Value of Money
1.3 The Concept of Calculating Present Value
1.4 The Concept of Calculating Future Value
1.5 The Concept of Stock Valuation
1.6 The Concept of Bond Valuation

3. Learning Objectives
• Understand the importance of financial markets, such as stock markets,
to a corporation and the financial manager’s role as liaison to those
markets
• Assess the effect of interest rates on today’s value of future cash flows
• Calculate the value of distant cash flows in the present and of current
cash flows in the future
• Value a stock as the present value of its expected future dividends
• Understand bond terminology
• Compute the price and yield to maturity of a coupon bond