本科會(huì)計(jì)專業(yè)英語教案Chapter 12

(本科）會(huì)計(jì)專業(yè)英語教案Chapter12(本科）會(huì)計(jì)專業(yè)英語教案Chapter12(本科）會(huì)計(jì)專業(yè)英語教案Chapter12教學(xué)目標(biāo)知識目標(biāo)：Explainthenatureandpurposeoffinancialmanagement.能力目標(biāo)：Interprettherelationshipbetweenfinancialobjectives,corporateobjectivesandcorporatestrategy.Identifyanddescribeavarietyoffinancialobjectives.素質(zhì)目標(biāo)：Understanddifferentfinancialinstrumentsandfinancialmarkets.Explainandapplythevalueformoney.教學(xué)重點(diǎn)Understanddifferentfinancialinstrumentsandfinancialmarkets.Explainandapplythevalueformoney.教學(xué)難點(diǎn)Explainandapplythevalueformoney.教學(xué)手段結(jié)合理論與案例小組討論教學(xué)學(xué)時(shí)2課時(shí)教學(xué)內(nèi)容與教學(xué)過程設(shè)計(jì)注釋Chapter12IntroductiontoFinancialManagement〖理論知識〗Topic1:AnoverviewofFinancialManagementNatureofFinancialManagementFinancialmanagementcanbedefinedasthemanagementofthefinancesofanorganizationinordertoachievethefinancialobjectivesoftheorganization.Theusualassumptioninfinancialmanagementfortheprivatesectoristhattheobjectiveofthecompanyistomaximizeshareholders’wealth.FinancialPlanningThefinancialmanagerwillneedtoplantoensurethatenoughfundingisavailableattherighttimetomeettheneedsoftheorganizationforshort,mediumandlong-termcapital.(1)Intheshortterm,fundsmaybeneededtopayforpurchasesofinventory,ortosmoothoutchangesinreceivables,payablesandcash:thefinancialmanagermustensurethatworkingcapitalrequirements(ie,requirementsfordaytodayoperations)aremet.(2)Inthemediumorlongterm,theorganizationmayhaveplannedpurchasesofnon-currentassets,suchasplantandequipment,forwhichthefinancialmanagermustensurethatfundingisavailable.3. FinancialManagementDecisionsThefinancialmanagermakesdecisionsrelatingtoinvestment,financinganddividends.Themanagementofriskmustalsobeconsidered.Exhibit12-1displaysexamplesofdifferenttypesofinvestmentdecision.Exhibit12-1ExamplesofDifferentTypesofInvestmentDecisionDecisionsinternaltothe

businessenterpriseWhethertoundertakenewprojectsWhethertoinvestinnewplantandmachineryResearchanddevelopmentdecisionsInvestmentinamarketingoradvertisingcampaignDecisionsinvolving

externalpartiesWhethertocarryoutatakeoveroramergerinvolvinganotherbusinessWhethertoengageinajointventurewithanotherenterpriseDisinvestmentdecisionsWhethertoselloffunprofitablesegmentsofthebusinessWhethertoselloldorsurplusplantandmachineryThesaleofsubsidiarycompanies4. Managementaccounting,financialaccountingandfinancialmanagementExhibit12-2FinancialAccountsandManagementAccountsFinancialAccountsManagementAccountsTheformatofpublishedfinancialaccountsisdeterminedbylawandbyaccountingstandards.

Inprincipletheaccountsofdifferentorganizationscanthereforebeeasilycompared.Theformatofmanagementaccountsisentirelyatmanagementdiscretion:nostrictrulesgovernthewaytheyarepreparedorpresented.Financialaccountsconcentrateonthebusinessasawhole,aggregatingrevenuesandcostsfromdifferentoperations,andareanendinthemselves.Managementaccountscanfocusonspecificareasofanorganization’sactivities.Informationmayaidadecisionratherthanbeanendproductofadecision.Mostfinancialaccountinginformationisofamonetarynature.Managementaccountsincorporatenon-monetarymeasures.Financialaccountspresentanessentiallyhistoricpictureofpastoperations.Managementaccountsarebothahistoricalrecordandafutureplanningtool.5. FinancialObjectivesandtheRelationshipwithCorporateStrategyCorporateobjectivesCorporateobjectivesarethosewhichareconcernedwiththefirmasawhole.Objectivesshouldbeexplicit,quantifiableandcapableofbeingachieved.Thecorporateobjectivesoutlinetheexpectationsofthefirmandthestrategicplanningprocessisconcernedwiththemeansofachievingtheobjectives.

Objectivesshouldrelatetothekeyfactorsforbusinesssuccess,whicharetypicallyasfollows.Profitability(returnoninvestment)MarketshareGrowthCashflowCustomersatisfactionThequalityofthefirm’sproductsIndustrialrelationsAddedvalueFinancialobjectivesFinancialtargetsmayincludetargetsfor:earnings;earningspershare;dividendpershare;gearinglevel;profitretention;operatingprofitability.Theusualassumptioninfinancialmanagementfortheprivatesectoristhattheprimaryfinancialobjectiveofthecompanyistomaximizeshareholders'wealth.ShareholderwealthmaximizationProfitmaximizationEarningspersharegrowthOtherfinancialtargets6. Non-financialObjectivesAcompanymayhaveimportantnon-financialobjectiveswhichmustbesatisfiedinordertoensurethecontinuingparticipationofallstakeholders.Examplesofnon-financialobjectivesareasfollows.(1)Thewelfareofemployees(2)Thewelfareofmanagement(3)Theprovisionofaservice(4)Thefulfillmentofresponsibilitiestowardscustomers(5)Thefulfillmentofresponsibilitiestowardssuppliers(6)ThewelfareofsocietyasawholeTopic2:FinancialInstrumentsandMarketsFinancialInstrumentsBondsAbond,likeanyotherformofindebtedness,isafixed-incomesecurity.Theholderreceivesaspecifiedannualinterestincomeandaspecifiedamountatmaturity,nomoreornoless(unlessthecompanygoesbankrupt).CallProvisionsVirtuallyallcorporatebondscontainaclausegivingtheissuingcompanytheoptiontoretirethebondspriortomaturity.Frequentlythecallpriceforearlyretirementwillbeatamodestpremiumaboveparorthebondmayhaveadelayedcall,meaningtheissuermaynotcallthebonduntilithasbeenoutstandingforaspecifiedperiod,usually5or10years.CovenantsTypicalcovenantsincludealowerlimitonthecompany’scurrentratio,anupperlimitonitsdebt-to-equityratioandperhapsarequirementthatthecompanynotacquireorsellmajorassetswithoutpriorcreditorapproval.RightsinLiquidationThedistributionofliquidationproceedsinbankruptcyisdeterminedbywhatisknownastherightsofabsolutepriority.Firstinlineare,naturallythegovernmentforpast-duetaxesandthebankruptcylawyerswhowrotethelaw.Amonginvestors,thefirsttoberepaidareseniorcreditors,thengeneralcreditors,andfinallysubordinatedcreditors.SecuredCreditorsAsecuredcreditisaformofseniorcreditinwhichtheloaniscollateralizedbyaspecificcompanyassetorgroupofassets.Inliquidation,proceedsfromthesaleofthisassetgoonlytothesecuredcreditor.BondsasanInvestmentFormanyyears,investorsthoughtbondstobeverysafeinvestments.Afterall,interestincomeisspecifiedandthechancesofbankruptcyareremote.However,thisreasoningignoredthebadeffectsofinflationonfixed-incomesecurities.BondRatingsAbondratingisalettergrade,suchasAA,assignedtoanissuethatreflectstheanalyst'sappraisalofthebond’sdefaultrisk.Analystsdeterminetheseratingsusingmanytechniques,includinganalysisofthecompany'sbalancesheetdebtratiosanditscoverageratiosrelativetocompetitors.JunkBondsAcompany’sbondratingisimportantbecauseitaffectstheinterestratethecompanymustoffer.Moreover,manyinstitutionalinvestorsareprohibitedfrominvestinginbondthatareratedlessthan“investment”grade,usuallydefinedasBBB,andabove.Asaresult,therehavebeenperiodsinthepastwhencompanieswithlower-ratedbondshadgreatdifficultyraisingdebtinpublicmarkets.Below-investment-gradebondsareknownvariouslyasspeculative,high-yield,orsimplyjunkbonds.CommonStockCommonstockisaresidualincomesecurity.Thestockholderhasaclaimonanyincomeremainingafterthepaymentofallobligations,includinginterestondebt.(10)ShareholderControlAtleastintheory,stockholdersexercisecontrolovercompanyaffairsthroughtheirabilitytoelecttheboardofdirectors.However,thewidedistributionofshareownershipandthelawsgoverningelectionoftheboardhavefrequentlycombinedtogreatlyreducethisauthority,althoughthewindsofchangemaybeblowing.PreferredStockPreferredstockisahybridsecurity,likedebtinsomeways,butlikeequityinothers.Likedebt,preferredstockisafixed-incomesecurity.Itpromisestheinvestoranannualfixeddividendequaltothesecurity'scouponratetimesitsparvalue.CumulativePreferredCompanyboardsofdirectorshavetwostrongincentivestopaypreferreddividends.Oneisthatpreferredshareholdershavepriorityovercommonshareholderswithrespecttodividendpayments.Commonshareholdersreceivenodividendsunlesspreferredholdersarepaidinfull.Second,virtuallyallpreferredstocksarecumulative.Ifafirmdoesnotpayapreferreddividendontime,thearrearageaccumulatesandmustbepaidinfirmbeforethecompanycanresumecommondividendpayments.FinancialMarketsPrivatePlacementorPublicIssue?Companiesraisemoneyintwobroadwaysthroughprivatenegotiationswithbanks,insurancecompanies,pensionfunds,andotherfinancialinstitutions,orbysellingsecuritiestothepublic.Theformerisknownasaprivateplacementthelatterisapublicissue.ExchangesandOver-the-CounterMarketsPublicissuestradeontwotypesofmarkets:organizedexchangesandover-the-countermarkets.Organizedexchangesarecentralizedtradinglocationsthatmaintainactivemarketsinhundredsofstocksandbonds.Over-the-counter(OTC)marketsaremuchmoreinformal.AnybrokeragehouseanywhereinthecountrycancreateanOTCmarketforastockorabondbyquotingabidpriceatwhichitwillbuythesecurityandahigheraskingpriceatwhichitwillsellit.InternationalFinancialMarketsFromaglobalperspective,companiescanraisemoneyonanyofthreetypesofmarketsdomestic,foreign,orinternational.Topic3:ValueforMoneyIntroductiontoPresentValuePresentvalue(PV)=C1/1+rNetpresentvalueispresentvalueplusanyimmediatecashflowNetPresentValue(NPV)=C0+C1/1+rC0isnegativeiftheimmediatecashflowisaninvestment,thatis,ifitisacashoutflow.TheCalculationofPresentValueThebasicpresentvalueformulaforanassetthatpaysoffinseveralperiodsisthefollowingobviousextensionofour1-periodformula;PV=(C1/1+r1)+[C2/(1+r2)2]+…TheValueofCommonStocksThevalueofastockisequaltothestreamofcashpaymentsdiscountedattherateofreturnthatinvestorsexpecttoreceiveoncomparablesecurities.Commonstocksdonothaveafixedmaturitytheircashpaymentsconsistofanindefinitestreamofdividends.Therefore,thepresentvalueofacommonstockis,PV=t=1However,wedidnotderiveourDCFformulajustbysubstitutingDIV,forCt.Wedidnotjustassumethatinvestorspurchasecommonstockssolelyfordividends.Infact,webeganwiththeassumptionthatinvestorshaverelativelyshorthorizonsandinvestforbothdividendsandcapitalgains.Ourfundamentalvaluationformulais,therefore,P0=(DIV1+P1)/(1+r)Thisisaconditiono