Financial Management Decision
Long-term investment decisions
( What long-term investments should the firm undertake?)
Long-term financing decisions
(How should the firm raise money to fund these investments?)
• Read the mini case and think: 1. What‟s the Dell‟s Sales philosophy? 2. Find the specialized vocabulary of financial management?
Dell 销售理念
按照客户要求制造计算机，并向客 户直接发货，使戴尔公司能够最有效和 明确地了解客户需求，继而迅速做出回 应。这个直接的商业模式消除了中间商， 这样就减少了不必要的成本和时间，让 戴尔公司更好地理解客户的需要。
16.mix of debt and equity 负债与股票的组合 cash dividend 现金股利 dividend policy 股利政策 dividend-payout ratio 股利支付比率 risk aversion 风险规避 stock repurchase （stock buyback) 股票回购 stock offering 股票发行 financing mix 融资组合
11. stockholder（shareholder)股东 None of the shareholder attend the AGM. 没有一个股东出席年度股东大会。 12.tradeoff 权衡，折中 risk-return tradeoff 风险-收益权衡 13.inventory 存货 make an inventory of 盘点; 编制...清单 14.patent 专利 trademark 商标 international protection of patent 专利权的国际保护 What trademark is it? 什么品牌的? 15.creditor 债权人 He come to an arrangement with his creditor. 他与债权人达成解决纠纷协议。
Working Capital Management Decisions
(How should the firm manage its short-term assets and liabilities?)
Long-term investment decisions
• • • • • In what lines of business should the firm engage? Should the firm acquire other companies? What sorts of property, plant, and equipment should the firm hold? Should the firm modernize or sell an old production facility? Should the firm introduce a more efficient distribution system than the current one?
1.The notion of the capital budgeting ? Process of planning and managing a firm‟s longterm investments is called budgeting. 2.The investment principle ? The firm should invest in assets and projects yielding a return greater than the minimum acceptable hurdle rate.
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Who are the people of the financial managers? The person associated with the financial management function is usually a top officer of the firm such as a vice president or the chief financial officer (CFO) What are the duties and responsibilities of the financial manager ? The two main functions of the financial manager concern acquiring and allocating funds among a firm‟s activities. They also acts as a liaison between others in the finance department and management personnel from other departments.
common stock 普通股 preferred stock 优先股 current asset 流动资产 current liability 流动负债 stockholders’ equity 股东权益 marketable security 流动性证券 tangible fixed assets 有形固定资产 intangible fixed assets 无形固定资产
5.vice president of finance 财务副总裁 chief financial officer(CFO) 首席财务官 chief executive officer(CEO)首席执行官 6.pivotal 关键的
Any deviation from this economy pivotal task endangers our material base. 离开了经济建设这个中心，就有丧失物质基础的危险。 7. allocate(资源、权利）配置 capital allocation 资本配置 allocate shares 分配股份
8. Volatility 不稳定性 Interest rates and financial market volatility would remain high due to the market uncertainty. 市场前景不明朗，亦会令利率持续高起，金融市场波动。 9.balance sheet 资产负债表 income (profit) statement 利润表 cash flow statement 现金流量表 10.capital budgeting 资本预算 capital structure 资本结构 working capital management 营运资本管理 Capital Budgeting and Long-term Financing management 资本预算及远期财务管理
Financial management is an integrated decisionmaking process concerned with acquiring, financing, and managing assets to accomplish some overall goal within a business entity. • managerial finance • corporate finance • business finance CEO- chief executive officer CFO- chief financial officer vice president of finance
words study
1.financial management 财务管理 2.decision-making 决策，决策的 investment decisions; financing decisions; 3.acquisition 收购（purchase) acquire 取得 acquisition and loss of ownership 所有权的取得和丧失 4.publicly traded corporations 上市公司 listed corporation stock is publicly traded but most is held by a few shareholders who have no plans to sell 股票公开买卖，但是大部分股票被少数不计划卖出的1 Financial Management and Financial Manager
1.2 Financial Management Decision 1.3 Risk–Return Tradeoff
Financial Management and Financial Manager
Long-term financing decisions
• • • • • • Does the type of financing used make a difference? Is the existing capital structure the right one? How and where should the firm raise money? Should the firm use funds raised through its revenues? Should the firm raise money from outside the business? If the firm seeks external financing, should it bring in other owners or borrow the money?