SOLUTION MANUAL
Corporate Finance
,Chapter 1
Introduction To Corporate Finance
Slides
1.1 Chapter 1: Introduction To Corporate Finance
1.2 Key Concepts And Skills
1.3 Chapter Outline
1.4 1.1 What Is Corporate Finance?
1.5 The Balance Sheet Model Of The Firm
1.6 The Capital Budgeting Decision
1.7 The Capital Structure Decision
1.8 Short-Term Asset Management
1.9 The Financial Manager
1.10 Hypothetical Organization Chart
1.11 1.2 The Corporate Firm
1.12 Forms Of Business Organization
1.13 A Comparison Of Corporations And Partnerships
1.14 1.3 The Importance Of Cash Flow
1.15 1.4 The Goal Of Financial Management
1.16 1.5 The Agency Problem And Control Of The Corporation
1.17 Management Goals
1.18 Managing Managers
1.19 1.6 Regulation
1.20 Quick Quiz
1.21 End Of Main Content
1.22 Accessibility Content: Text Alternatives For Images
1.23 Short-Term Asset Management Text Alternative
1.24 Hypothetical Organization Chart Text Alternative
1.25 1.3 The Importance Of Cash Flows Text Alternative
Chapter Web Sites
Section Web Address
1.1 Cfo: Www.Cfo.Com
1.2 ―Launch Your Business‖: Www.Sba.Gov
1.4 Business Ethics Magazine: Www.Business-Ethics.Com
1.6 Sarbanes-Oxley Survey: Www.Protiviti.Com/Us-
En/Insights/Sox-Compliance-Survey
Chapter Organization
1.1 What Is Corporate Finance?
The Balance Sheet Model Of The Firm
1-1
Copyright © 2023 Mcgraw-Hill Education. All Rights Reserved. No Reproduction Or Distribution Without
The Prior Written Consent Of Mcgraw-Hill Education.
,Chapter 01 - Introduction to Corporate Finance
The Financial Manager
1.2 The Corporate Firm
The Sole Proprietorship
The Partnership
The Corporation
A Corporation By Another Name…
1.3 The Importance Of Cash Flows
Identification Of Cash Flows
Timing Of Cash Flows
Risk Of Cash Flows
1.4 The Goal Of Financial
Management Possible
Goals
The Goal Of The Financial
Manager A More General Goal
1.5 The Agency Problem And Control Of The
Corporation Agency Relationships
Management Goals
Do Managers Act In The Stockholders‘ Interests?
Stakeholders
1.6 Regulation
The Securities Act Of 1933 And The Securities Exchange Act Of
1934 Sarbanes-Oxley
Annotated Chapter Outline
Slide 1.1 Chapter 1: Introduction To Corporate
Finance Slide 1.2 Key Concepts And Skills
Slide 1.3 Chapter Outline
Powerpoint Note: If There Is A Slide That You Do Not Wish To Include In Your
Presentation, Choose To Hide The Slide Under The “Slide Show” Menu, Instead
Of Deleting It. If You Decide That You Would Like To Use That Slide At A Later
Date, You Can Just Unhide It.
Powerpoint Note: Be Sure To Check Out The Notes That Accompany Some Of
The Slides On The “Notes Pages” Within Powerpoint.
1-2
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
, Chapter 01 - Introduction to Corporate Finance
1.1. What Is Corporate Finance?
Slide 1.4 1.1 What Is Corporate Finance?
Corporate Finance Addresses Several Important Questions:
1. In What Long-Term Assets Should The Firm Invest?
(Capital Budgeting)
2. How Should The Firm Raise Funds For Required Capital
Expenditures? (Capital Structure)
3. How Should Short-Term Operating Cash Flows Be Managed?
(Net Working Capital)
A. The Balance Sheet Model Of The Firm
Slide 1.5 The Balance Sheet Model Of The Firm
The Balance Sheet Presents A Picture Of The Firm At A Point In
Time, And It Provides A Model By Which To Address The Three
Basic Questions That Corporate Finance Managers Must Answer.
Slide 1.6 The Capital Budgeting Decision
1. Long-Term Investment Decisions Determine The
Level Of Fixed Assets.
Slide 1.7 The Capital Structure Decision
2. Financing Policy Determines The Liabilities And Equity
Side Of The Balance Sheet.
Slide 1.8 Short-Term Asset Management
3. Short-Term Asset Management Choices (E.G.,
Conservative Versus Aggressive) Affect The Level Of
Net Working Capital.
B. The Financial Manager
Slide 1.9 The Financial Manager
1-3
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
Corporate Finance
,Chapter 1
Introduction To Corporate Finance
Slides
1.1 Chapter 1: Introduction To Corporate Finance
1.2 Key Concepts And Skills
1.3 Chapter Outline
1.4 1.1 What Is Corporate Finance?
1.5 The Balance Sheet Model Of The Firm
1.6 The Capital Budgeting Decision
1.7 The Capital Structure Decision
1.8 Short-Term Asset Management
1.9 The Financial Manager
1.10 Hypothetical Organization Chart
1.11 1.2 The Corporate Firm
1.12 Forms Of Business Organization
1.13 A Comparison Of Corporations And Partnerships
1.14 1.3 The Importance Of Cash Flow
1.15 1.4 The Goal Of Financial Management
1.16 1.5 The Agency Problem And Control Of The Corporation
1.17 Management Goals
1.18 Managing Managers
1.19 1.6 Regulation
1.20 Quick Quiz
1.21 End Of Main Content
1.22 Accessibility Content: Text Alternatives For Images
1.23 Short-Term Asset Management Text Alternative
1.24 Hypothetical Organization Chart Text Alternative
1.25 1.3 The Importance Of Cash Flows Text Alternative
Chapter Web Sites
Section Web Address
1.1 Cfo: Www.Cfo.Com
1.2 ―Launch Your Business‖: Www.Sba.Gov
1.4 Business Ethics Magazine: Www.Business-Ethics.Com
1.6 Sarbanes-Oxley Survey: Www.Protiviti.Com/Us-
En/Insights/Sox-Compliance-Survey
Chapter Organization
1.1 What Is Corporate Finance?
The Balance Sheet Model Of The Firm
1-1
Copyright © 2023 Mcgraw-Hill Education. All Rights Reserved. No Reproduction Or Distribution Without
The Prior Written Consent Of Mcgraw-Hill Education.
,Chapter 01 - Introduction to Corporate Finance
The Financial Manager
1.2 The Corporate Firm
The Sole Proprietorship
The Partnership
The Corporation
A Corporation By Another Name…
1.3 The Importance Of Cash Flows
Identification Of Cash Flows
Timing Of Cash Flows
Risk Of Cash Flows
1.4 The Goal Of Financial
Management Possible
Goals
The Goal Of The Financial
Manager A More General Goal
1.5 The Agency Problem And Control Of The
Corporation Agency Relationships
Management Goals
Do Managers Act In The Stockholders‘ Interests?
Stakeholders
1.6 Regulation
The Securities Act Of 1933 And The Securities Exchange Act Of
1934 Sarbanes-Oxley
Annotated Chapter Outline
Slide 1.1 Chapter 1: Introduction To Corporate
Finance Slide 1.2 Key Concepts And Skills
Slide 1.3 Chapter Outline
Powerpoint Note: If There Is A Slide That You Do Not Wish To Include In Your
Presentation, Choose To Hide The Slide Under The “Slide Show” Menu, Instead
Of Deleting It. If You Decide That You Would Like To Use That Slide At A Later
Date, You Can Just Unhide It.
Powerpoint Note: Be Sure To Check Out The Notes That Accompany Some Of
The Slides On The “Notes Pages” Within Powerpoint.
1-2
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
, Chapter 01 - Introduction to Corporate Finance
1.1. What Is Corporate Finance?
Slide 1.4 1.1 What Is Corporate Finance?
Corporate Finance Addresses Several Important Questions:
1. In What Long-Term Assets Should The Firm Invest?
(Capital Budgeting)
2. How Should The Firm Raise Funds For Required Capital
Expenditures? (Capital Structure)
3. How Should Short-Term Operating Cash Flows Be Managed?
(Net Working Capital)
A. The Balance Sheet Model Of The Firm
Slide 1.5 The Balance Sheet Model Of The Firm
The Balance Sheet Presents A Picture Of The Firm At A Point In
Time, And It Provides A Model By Which To Address The Three
Basic Questions That Corporate Finance Managers Must Answer.
Slide 1.6 The Capital Budgeting Decision
1. Long-Term Investment Decisions Determine The
Level Of Fixed Assets.
Slide 1.7 The Capital Structure Decision
2. Financing Policy Determines The Liabilities And Equity
Side Of The Balance Sheet.
Slide 1.8 Short-Term Asset Management
3. Short-Term Asset Management Choices (E.G.,
Conservative Versus Aggressive) Affect The Level Of
Net Working Capital.
B. The Financial Manager
Slide 1.9 The Financial Manager
1-3
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
