COMMERCE 2FA3 Lecture Notes - Lecture 1: W. M. Keck Observatory, Cash Flow, Socially Responsible Investing

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2FA3
• Professor: Will Huggins

Document Summary

Chapter outline: corporate finance and the financial manager. The agency problem and control of the corporation. Trends in financial markets and financial management: outline of the text. Emphasize that business finance is just another name for the corporate finance . Students often get confused by the terminology, especially when different terms are used to refer to the same thing. Financial managers try to answer some or all of these questions. The top financial manager within a firm is usually the chief financial officer (cfo) Treasurer oversees cash management, capital expenditures and financial planning: controller oversees taxes, cost accounting, financial accounting and data processing. Provide some examples of capital budgeting decisions, such as what product or service will the firm sell, should we replace old equipment with newer, more advanced equipment, etc. Provide some examples of working capital management, such as who should we sell to on credit, how much inventory should we carry, when should we pay our suppliers, etc.