Principles of Finance (Chapter 01)金融學(xué)原理

1、Principles of FinancePart 1An Overview of FinanceRequests for permission to make copies of any part of the work should be mailed to: Thomson/South-Western5191 Natorp Blvd.Mason, OH 45040Chapter 1Career Opportunities in FinanceFinancial marketsInvestmentsManagerial financeCareer Opportunities in Fina

2、ncial MarketsFinancial institutions Banks Insurance companies Savings and loans Credit unionsCareer Opportunities in InvestmentsStock brokerage firmsBanksInvestment companiesInsurance companiesCareer Opportunities in Managerial FinanceAll types of businessesSkills are used in Management, Marketing,

3、Accounting and Information SystemsHistory of Financial Markets Early 1900s - banks were full service financial organizations Crisis of 1907 Bank failures during 1920s Great depression 1929 - 1933 Legislative reform Deregulation since 1970sHistory of InvestmentsEarly 1900s investments dominated by sm

4、all group of wealthy investorsIndustrialization during WWIGrowth of investment firms by 1920sStock market crash 1929 1932; market value decreased 80%History of InvestmentsRegulations of securitiesProsperity after WWIIInflation and high interest in 1970sIncrease in individual and institutional invest

5、orsHistory of Managerial FinanceEmergence as a separate field of study Early 1900s Emphasis on mergers and capitalizationWave of mergers during 1920sBankruptcies in 1930sHistory of Managerial FinanceLiquidity stressed during 1940s & 50sAnalysis and maximizing value in late 1950s and the 1960sInn

6、ovative risk management in 1970sHistory of Managerial FinanceFocus on valuation continued in 1980s, analysis expanded to include:Inflation and effects on business decisionsDeregulation of financial institutionsIncrease in computer analysis and electronic information transferIncreased importance of g

7、lobal marketsInnovative financial productsHistory of Managerial FinanceTrends in the 1990s have continued into twenty-first century Continued globalization of business Further increase in use of technology Regulatory attitude of governmentGlobalization of BusinessImprovements in transportation and c

8、ommunicationsPolitical clout of consumersCost of developing new products has increasedMultinational firms are able to shift production to wherever costs are lowestImportance of Managerial FinanceFinancial managers no longer merely fund the business needsFinancial managers coordinate decisionsPeople

9、in marketing, accounting, production, and personnel need to understand finance to do their job wellThe Financial Managers ResponsibilitiesObtain and use funds in a way that will maximize the value of the firmValue = the present, or current, value of the cash flows an asset is expected to generate in

10、 the futureThe Valuation ProcessChapter 1 Summary1.Finance deals with decisions about money2.The study of finance consists of three interrelated areas:Financial markets, investments, managerial finance3.There are financial implications in nearly every business-related decision4.Changes in recent dec