Lecture 1
Lecture 1
Lecturer in Finance and Banking, International University – Vietnam National University HCMC
Lecturer in Accounting, Auckland University of Technology, New Zealand (2018)
Scholar, University of Massachusetts, Amherst, United States (2010)
1
3/2/2024
2
3/2/2024
CT1
Final-exam 40%
3
Slide 6
Financing decision
Investing decision 2 Raising funds
1 Investment
FINANCIAL
FINANCIAL
OPERATIONS MARKETS
MANAGER
(Plants, equipment, (INVESTORS:
4
DIV/INT/DEBT Debt-holders
projects) Cash from REINVEST
4
3 paid Stock-holders)
operation
4
3/2/2024
BOD
Board of Directors
TREASURER CONTROLER
10
5
3/2/2024
Are owners & the no – individual no – individual yes – corp. & rev-exp = income before tax(EBT)
EBT- cor tax=net income (EAT)
business taxed separately? income tax income tax individual tax
double taxation
- Advantage: Easy to form + Full control + Few regulations + No corporate income tax
- Disadvantage:
- Advantage: Easily unlimited Liability +formed
and inexpensively Limited to the
+ Few life of owner
regulations + No+ corporate
Difficult toincome
obtain large adv: easy
tax amount raise fund and limited liabilities
of funding
- Disadvantage: unlimited Liability (general partners) + Difficult to transfer ownership + Difficult to obtain large K amount
Maximizing stock
prices???
6
3/2/2024
Maximizing stock’s
intrinsic value
7
3/2/2024
END OF LECTURE 1