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Class Notes FINC 350

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Well detailed descriptions on terms, definitions, and other processes of the introduction into FINC 350 Business Finance

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  • September 6, 2023
  • 3
  • 2023/2024
  • Class notes
  • Dr. dave hickman
  • All classes
  • Unknown
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CH 1 Goals and Activities of Financial Management

The field of finance
- Finance fits between economics and accounting.
- Economics provides picture of business environment

Consider consumers and producers

Accounting provides financial data
- Income statements, balance sheets, cash flow statements.

Financial managers need to know how to understand and interpret financial statements.
- CFO, often in charge of financial planning, accounting, and tax systems.
- Forward thinking and measuring business activity results.
- Credit Decisions
- Monitoring inventory
- Collect and distribute cash

Investments versus Corporate Finance

Investments.
- Investors use investment principles to value and bonds of companies
- Investors choose which to purchase
- Portfolio includes securities by multiple companies.

Corporate finance
- Principles used to determine which assets the firm should develop or buy.
- Corporate tax rate is at 21%

The Value of Studying Finance

Career Opportunites include
- Corporate financial officer, banker, stockbroker, financial analysist

Activities of Financial Management

Risk Return trade off determined to maximize market value.
- Influences operational side (Product A vs. B. )
- Influences financial mix

Forms Of Organization

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