BU121 Lecture Notes - Lecture 13: Operating Cash Flow, Income Approach, Leveraged Buyout
Document Summary
The role of finance and the financial manager. How organizations use funds: short term expenses. Raising long term financing: long-term debt financing, equity financing. Why it is so difficult to raise money for entrepreneurial ventures: problems - information asymmetry and uncertainty, solutions to venture finance problems* Amounts and sources of capital: estimating financing needs** Start-up costs, (pro-forma financials)/forecast of revenues and costs (cash flow statements)/cash budgets, breakeven: types and sources of capital. The structure of venture finance: process/screening, staging, and cost of capital. Social capital and the behavioural side of finance. It(cid:859)s (cid:374)ot all the (cid:374)u(cid:373)(cid:271)e(cid:396)s the(cid:455)(cid:859)(cid:396)e i(cid:374)(cid:448)esti(cid:374)g i(cid:374) (cid:455)ou people trust people. * worksheet based on historical measures of amounts and timing of cash flows. You can get part mark for doing it. You need to prepare a cash budget for the months of june, july and august. Beginning cash balance in june = min. cash balance.
