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FinanceManager财务经理岗位职责职位要求

FinanceManager财务经理岗位职责职位要求

FinanceManager财务经理岗位职责职位要求财务经理是企业中特别紧要的职位，他们管理和引导财务团队，订立和监督资金策略，并确保企业的财务健康。

在这篇文章中，我们将深入探讨财务经理的职责和必备技能。

一、职责1. 负责订立和实施企业的财务策略和计划，确保企业达到财务目标。

2. 引导团队完成精准、适时、有效、合规的财务报告和预算编制，监控财务预算执行情况，适时调整预算计划，确保资金的充分性。

3. 负责管理企业的现金流，检查企业的债务和融资情形，确保现金流的稳定和企业的融资成本低。

4. 管理和监督与银行和其他金融机构的合作关系，协调企业与内外部利益相关方的关系。

5. 进行财务分析和财务风险管理，分析企业的财务情形，推测收益和风险，提出改进建议。

6. 确保公司的财务策略与法规的要求相符合，确保公司的经营是合法合规的。

7. 培育和管理财务团队，激励员工完成团队目标，加强沟通和协作。

二、技能要求1. 具备财务分析、投资分析和决策的本领，能够依据财务数据和市场趋势推测风险和机会，从中订立有效的财务策略。

2. 具备财务管理的技能，能够管理企业的会计和金融记录，管理现金流和预算执行，把握风险管理的基本方法。

3. 具备团队协作和管理的本领，能够领导和激励员工完成财务目标，确保企业的财务健康。

4. 具备沟通和协商的本领，能够与内外部团队合作高效地沟通，协商与其他利益相关方的合作关系。

5. 具备财务管理软件和技术的本领，娴熟把握 Excel、SAP、Oracle 等财务管理软件，娴熟把握财务学问和法规。

三、职位要求1. 有五年以上的财务管理阅历，谙习企业财务分析、推测和管理，有团队管理阅历。

2. 具有会计、金融、商务或者相关领域的学士或以上学历，具有 CPA 或 CFA 证书的优先考虑。

3. 娴熟把握财务管理工具和软件，具有良好的计算机和通信技能。

4. 优秀的沟通本领和解决问题的本领，能够与内外部团队协同工作，能够解决多而杂的财务问题。

Managerial Finance Chapter 13—Return, Risk & the

Managerial Finance Chapter 13—Return, Risk & the

Portfolio Beta:
If we have the Beta coefficient for each of the individual investments in our portfolio, we can evaluate the overall risk in our entire portfolio. Using the earlier example, let's make the following assumptions: 40% + 40% + 20% = Portfolio P
Investment Portfolios
A portfolio of investments enables us to diversify and therefore minimize the portion of risk that relates to "surprises" or unexpected movement in individual securities.
Expected Return (2):
Suppose Investment A has probable returns as follows: • In the previous "go-go" market, it had earned 12%. • In the recent market slump, it earned only 4%. • If we project a 60% probability of renewed boom and a 40% probability of bust, then the expected return of A [ E(RA) ] is as follows: E(RA) = (.60 x .12) + (.40 x .04) = .072 + .016 = .088 or 8.8%

摩根士丹利金融词汇表

摩根士丹利金融词汇表

EnglishABSAccelerated depreciation AcceptorAccommodation paperAccounts payableAccounts receivableAccredited InvestorsAccredit valueAccreditingAccrual basisAccrued interestACEAcid Test RatioAcquisitionAcross the boardActing in concertActive assetsActive capitalActual marketActual priceActual useful lifeActuaryADBADRADSAd valoremAd valorem stamp duty AdjudicatorAdjustable rate mortgage (ARM) Admitted valueAdvanceAffiliated companyAfter dateAfter-hours dealingAfter-marketAfter-tax profitsAfternoon sessionAge dependency (ratio)Agency accountAging analysis of accounts AGMAgreementAlert messageAll-or-none orderAllocationAllotteeAllotmentAllowanceAlpha (Market Alpha)Alternative investmentAmerican Chamber of Commerce American Commodities Exchange American Depository Receipt American Depository Share (ADS) American Stock ExchangeAmerican style optionAmexAmortizable intangibles AmortizationAmsterdam Stock ExchangeAnnual General Meeting (AGM) AnnualizedAnnual reportAnticipatory breachAntimonopoly ActAntitrustAPECAppeals panelAppreciationAppropriationArbitrageArbitrationArm's length transactionArrearsArticles of AssociationASEANAsian bank syndication market Asian Development Bank (ADB) Asian dollar bondsAsian tigersAsia Pacific Economic Cooperation (APEC)Ask (asked) priceAsset AllocationAsset Backed SecuritiesAsset ManagementAsset strippingAsset swapAssignment methodAssociation of South East Asian Nations (ASEAN)ASXAt-the-close orderAt-the-moneyAt-the-money optionAuckland Stock ExchangeAuction marketAusterity measuresAuthorized capitalAuthorized fundAuthorized representativeAustralian Options MarketAustralian Stock ExchangeBack-door listingBack-end loadBack officeBack to back FX agreementBalance of paymentsBalance of tradeBalance sheetBalance sheet dateBalloon maturityBalloon paymentBank, Banker, BankingBank for International Settlements (BIS)BankruptcyBase dayBase rateBasel Capital AccordBasis Point (BP)Basis swapBasket of currenciesBasket warrantBear marketBear positionBear raidBearerBearer stockBehind-the-sceneBelow parBenchmarkBenchmark mortgage poolBeneficiaryBermudan optionBest practiceBeta (Market beta)BidBig BandBill of exchangeBills departmentBinaryBinary optionBISBlackout periodBlock tradeBlue chipsBlue SkyBoard of directorsBona fide buyerBond marketBondsBonus issueBonus shareBook close dateBook closure periodBook valueBookbuildingBookrunnerBoom-bustBOOTBOTBottom lineBottom-upBounced chequeBourseBP (Basis Point)Brand managementBreak-up feesBreak-up valuationBreakeven pointBretton Woods SystemBridging loanBroad moneyBroker, Broking, Brokerage House Brussels Stock ExchangeBSSMBubble economyBuild, Operate and Transfer (BOT) Build, Own, Operate and Transfer (BOOT)Build/Supply-Service/Maintain (BSSM) Bull marketBulletsBullishBundesbankBusiness dayBusiness managementBusiness studiesButterfly spreadBuy-backBuy-side analystBuyer's creditBuyoutBy-lawC-CorpCACCAGRCalendar yearCall-overCall-spread warrantCall optionCall protection/provisionCall warrantCallable bondCandlestick chartCapCapacityCAPEXCapital Adequacy RatioCapital baseCapital expenditureCapitalizationCapital marketsCapital raisingCapped floaterCarry tradeCarrying costCarrying valueCash-settled warrantCash earnings per shareCash flowCBOCBRCCCASSCDCDOCDSCEDELCeilingCeiling-floor agreementCentral Clearing & Settlement System Central transaction logCentralized borrowing and lending system CEOCEPACertificate of depositCertificate of incumbencyCertified Public Accountant (CPA)CFOChaebolChain debtsChange of domicileChapter 11Chartered financial analyst (CFA) Chicago Board of TradeChicago Board Options ExchangeChicago Mercantile ExchangeChief Executive Officer (CEO)Chief Financial Officer (CFO)Chief Information Officer (CIO)Chief Operations Officer (COO)China bankingChina Banking Regulatory Commission (CBRC)China Capital MarketsChina Development BankChina International Capital Corporation, CICCChina privatizationChina restructuringChina Securities Regulatory Commission (CSRC)China Stock MarketsChinese WallCIOClaimClawback notificationClean priceCLOClosed-end fundClosing priceCo-lead managerCode of conductCollarsCollateralized Bond Obligation Collateralized Debt Obligation Collateralized Loan Obligation Collateralized Mortgage Obligation Co-managerComfort letterCommercial loanCommercial paperCommission rebateCommodity Exchange, Inc.Common stockCompany financeComplex cash flowCompound annual growth rateCompound optionConcessionConference callConfidential pre-filing review Confidential submissionConfidentiality agreement ConglomerateConnected transactionConsiderationConsolidationConstant Maturity Treasury Derivative Constituent stockConstruction in progressConsumer Price Index (CPI) ConsumptionContested takeoverContingent liabilityContingent premiumContinuing obligationContra brokerContractual joint ventureControlling stake/interest Conventional capConversion of state assets into state sharesConversion premiumConversion priceConversion ratioConverted net collections Convertible bondsConvertible currencyConvexityCOOCopenhagen Stock ExchangeCore PCE deflatorCorporate bondsCorporate financeCorporate governanceCorporate visionCorporatizationCostCost overrun loansCost of carryCounsel's opinionCounterpartyCounterparty credit exposure CouponCoupon frequencyCoupon rateCovenantCovered warrantCPACPICredit Default SwapCredit facilitiesCredit foncia amortizationCredit lineCredit-linked notesCredit ratingCredit riskCredit spreadCreditwatchCross currency interest rate swap Cross tradeCSRCCurrency optionCurrency swapCurrent account deficitCurrent asset/liabilityCurrent/liquid ratioCustodianCustoms & usagesCyclicalityDAXDaily marginDay countDay orderDebt equity ratioDebt-equity swapDebt issuing vehiclesDebt service coverage ratio Default fineDefaultingDefault interestDefault riskDefensiveDeferred assetDeferred chargesDeferred taxDefined Contribution Plan DeflationDeflatorDelayed dataDeleveragedDelineation of activitiesDelistDeltaDemutualizationDepreciationDeregulationDerivativesDeutsche Borse AGDeutsche TerminborseDevaluationDifferential reportingDilutionDirect investmentDirect labor costDirectional Movement Index (DMI) Directors' undertakingsDirty priceDisclaimerDisclosureDiscount rateDiscretionary manager Discretionary orderDiscretionary powerDiscretionary trustDishonoured chequeDisinflationDisinterested shareholder Disposable incomeDistressed securities DiversificationDividendDividend in specieDJIADoha RoundDomestic Qualified Institutional Investor (DQII)Double bottom/double dipDow Jones Industries Average Index Downside riskDownstream enterpriseDownturnDQIIDragon bondsDrawing expense in advanceDual currency bondsDue-on-sale clauseDue diligenceDumpingDurationDynamic hedgingE-commerceE-tailersEAFEEASDAQEarning per share (EPS)EBITDAEECEmbedded optionEmerging marketEMUEngagement letterEnvironmental protection Environmental wasteEPSEquity, EquitiesEquity cushionEquity warrantEUEuroEurobondEurodollar bondsEuropean Association of Securities Dealers Automated Quotations (EASDAQ) European Economic CommunityEuropean Monetary Union (EMU) European Options ExchangeEuropean style optionEuropean Union (EU)Ex-couponEx-dateEx-dividend basisEx-rightsExchangeable bondExecutive directorExchange rateExercise priceExit feeExit priceExotic optionExotic warrantExploitation licenseExploitation rightExploration rightExport-oriented economyExposure draftExtendible bondsExternal auditorExternal debtExtraordinary general meeting (EGM) Extraordinary itemFace valueFair market priceFair market valueFannie MaeFAS 133Feasibility reportFECFederal Deposit Insurance Corporation (FDIC)Federal National Mortgage Association (Fannie Mae)Federal Open Market CommitteeFee-Based ContentFFOFiduciaryFiduciary dutyFIGFinancial AdvisorFinancial Business Operation Permit Financial exposureFinancial forecastFinancial Institutions Group (FIG) Financial leaseFinancial ManagementFinancial Markets, Financial Products Financial ServicesFinancial yearFirst mortgageFiscal policyFiscal yearFixed asset losses in suspenseFixed incomeFlat tradesFloatationFloating Rate NoteFloorFloor brokerFollow-on offeringFOMCForce majeureForeign Direct Investment (FDI)Foreign Exchange (FOREX)Foreign Exchange Business Operation PermitForeign Exchange CertificateForeign exchange mortgage loanForeign exchange swap centerForeign-funded enterpriseFormulae Based AmortizationForward Rate AgreementFRAFranchiserFranchisorFrankfurt Stock ExchangeFree cash flowFree floatFRNFrontier tradeFTSE IndexFull disclosureFully dilutedFully paid-up capitalFundamentalsFund ManagementFuture marketFuturesFXG&AG7GAAPGatewayGATTGDPGDRGearing ratioGEMGeneral Agreement on Tariffs & Trade (GATT)General & Administrative Expenses General managementGeneral mandateGeneral offerGenerally Accepted Accounting Principle Gini IndexGlobal bearer warrantGlobal coordinatorGlobal Depository ReceiptGlobal financeGlobal financial firm/institution Global offeringGNPGoing publicGoods and services tax (GST)Goodwill amortizationGovernment Concessionary & Soft Loan Grace periodGreenshoeGross domestic productGross national productGross profitGross spreadGroup of SevenGrowth Enterprises Market (GEM)Growth FundGun jumpingH-shareHang Seng China Enterprise IndexHang Seng IndexHard currencyHard landingHedge accountingHedge FundHedgingHIBORHidden reservesHKFEHKMAHKSARHKSCCHKSEHolding CompanyHomepageHong Kong Futures Exchange Ltd.Hong Kong Interbank Offer Rate (HIBOR) Hong Kong Monetary AuthorityHong Kong Securities Clearing Co. Ltd. Hong Kong Special Administrative Region Hong Kong Stock ExchangeHot moneyHSCEIHSIHurdle rateHybrid capIASICPIdle fundsIMFIMMImplicit deflatorImplied volatilityImported inflationImport quotaImport tariffIn-the-moneyIncentive siteIncome taxIndemnificationIndexed performanceIndication of interestsIndicative priceIndustrial and Commercial Consolidated TaxInflationInformation memorandumInformation technology (IT)Initial Conversion PremiumInitial Public OfferingInsider tradingInsolventInstitutional investorIntangible assetIntellectual property (IP)Interest Rate Swap (IRS)Interest-bearing assets Intergovernmental loanInterim reportIntermediaryInternational Accounting Standards (IAS) International FinanceInternational MarketInternational Monetary Fund (IMF) International Monetary Market (IMM) International Organization for StandardizationInternational Trust & Investment Corp. Internet Content Provider (ICP)Internet presenceIntraday liquidityIntraday margin callIntranetIntrinsic valueInventoryInvestment, InvestingInvestment advice, Investment advisor Investment bank, Investment banking Investment gradeInvestment researchInvestor RelationsIPOIrrevocable letter of credit IRSISOIssued (and outstanding) shares IssuerITITICJGBJobberJoint accountJoint and several liabilities Joint global coordinatorJoint stock companyJoint ventureJointly operated minesJumbo certificateJunior mortgageJunk bondKorea Composite IndexKorea Stock ExchangeKuala Lumpur Stock ExchangeL/CLabor ArbitrageLagged effectLarge open positionLBOLead managerLegal persons sharesLenderLender of the last resortLetter of creditLevel playing fieldLeverage = level of debt/equity Leveraged Buy Out(LBO) Leveraged rateLIBORLicensed bankLienLIFFELimit orderLimited recourseLimited partnershipLinked Exchange Rate SystemLiquid investmentLiquid Yield Option NoteLiquidityLiquidity ratioLiquidity riskListed companyLitigationLocal toll collecting highway infrastructure indexLock-inLock-outLock-upLock-Up AgreementLondon Commodity ExchangeLondon Interbank Offer RateLondon International Financial Futures and Options ExchangeLondon Metal ExchangeLondon Stock ExchangeLondon Traded Options MarketLong (position)Long callLong forwardLong options contractLong putLong straddleLong strangleLong-term shareholding (loyalty) incentiveLong-term supply agreementLoose bondLow-Budget OperationLoyaltiesLSELTM (Last twelve months)LTOMLYONM0M1M2M3M&AMaastricht TreatyMacroeconomicMadrid Stock ExchangeMain BoardMaintenance marginMakati Stock ExchangeMake-Whole CallMake-Whole ProvisionManagement Best PracticeManagement Buy-Out, MBOManagement feeManagement SeminarManagement ToolsManaging directorMandatory Provident Fund (MPF)Manila Stock ExchangeMarche a Terme International de France Marche des Options Negociables de la Bourse de ParisMarginMargin callMark-to-marketMarket accessMarket CapitalizationMarket economyMarket makerMarket orderMarket shareMarketable securitiesMarketingMatched orderMaterial misstatementMATIFMature marketMaturityMBSMean reversionMedium and long term loansMedium Term NoteMemorandum and Articles of Association Memorandum of association Memorandum of Regulatory Cooperation (MORC)Memorandum Of UnderstandingMergers & Acquisitions, M&AMezzanine fundMezzanine stageMFNMicro capitalizationMid-cap stockMilan Stock ExchangeMinority interestMisrepresentationModel CodeMomentum FundMonetarismMonetary policyMonetizeMoney-launderingMonopoly EnterpriseMontreal Stock ExchangeMoral hazardMoratoriumMortgage-backed securityMost Favored NationMOUMSCI (Morgan Stanley Capital International)MTNMulti-Lateral NettingMulti-Tranche OfferingMutual FundsNagoya Stock ExchangeNAPSNASDAQNational Association of Securities Dealers Automated Quotations National Automated Payment System National Bureau of Economic Research National Bureau of Statistics Natural resourcesNAVNBICNDPNet asset valueNet book valueNet Domestic Product (NDP)Net incomeNet present valueNetting agreementNew York Cotton Exchange, Inc.New York Futures ExchangeNew York Mercantile ExchangeNew York Produce ExchangeNew York Stock ExchangeNikkei Stock AverageNil-paid rightsNo-load fundNominalNominee accountNon-callableNon-collateralized warrantNon-deliverableNon-farm payroll dataNon-operating incomeNon-performing assetNon-performing LoansNon-tradable shareNotes receivableNotifiable transactionNotional sizeNPLsObligatory rightODOdd lotsOECDOEMOff-balance sheetOff-board tradingOff-budgetaryOffer for saleOligopolyOne-on-oneOne-time mandatory call/put option OPECOpen-end fundsOperating concessionsOperating profit/marginOperational riskOpportunity costOptionOrganization for Economic Co-operation and DevelopmentOrganization of Petroleum Exporting Countries (OPEC)Original Engineering Manufacturing Osaka Securities ExchangeOslo Stock ExchangeOTCOTC Bulletin BoardOut-of-the-moneyOutsourcingOver Draft/Over DrawOver-allotment optionOver-subscriptionOver-The-CounterOverboughtOverhead costOversoldOwned fund/own fundsP/E multipleP/E ratioPacific Economic Cooperation Council Pacific Stock ExchangePageviewPaid-up capitalPan-European Stock ExchangeParPar bondsParis BoursePartly-paid shareParityPatentPayment in lieu of noticePayoff periodPayoff profilePECCPegged Exchange Rate SystemPenalty provisionPenny stockPension PlanPer capita incomePerformance bondPerformance buydownsPerforming loanPhiladelphia Stock ExchangePhysical assets reserve specifically authorizedPhysical deliveryPhysical marketPhysical warrantPit tradingPlantPlain vanilla bondPollutantPollutant chargePortfolioPortfolio insurancePortfolio ManagementPositionPosition squaringPost-dated chequePot namesPotential obligationPower of attorneyPPIPPPPRPraecipiumPRC - People's Republic of China Pre-emptive rightPreference sharesPreferential treatmentPremiumPremium putPremium put structure PrepaymentsPresent valuePress releasePricePrice rampingPrice rangePrice talkPrice/Earning ratio (P/E)Price/Book value ratioPrimary debtPrime ratePrincipalPriority Construction Treasury Private BankingPrivate EquityPrivate placementPrivate Wealth Management Privately negotiated options Privately operated mines PrivatizationProducer Price Index (PPI)Profit marginProfit-sharing planProformaProgram arrangerProject approvalProject financePromissory notePromoterProprietary Network System (PNS) ProspectusProtective putProvisional agreementProxyPSEPublic filingPublic ListingPublic RelationsPublic welfare fundPublicity restrictionPurchasing Power Parity (PPP)Pure playPut optionPut writerPutable bondPyramid sellingQ&AQDIIQFIIQualified Domestic Institutional Investor (QDII)Qualified Foreign Institutional Investor (QFII)Qualified Institutional Buyer (QIB) Qualitative analysisQuantitative analysisQuasi-credit financingsQuasi moneyQuestionnaireQuick ratioQuoted company (= listed company) RallyRampingRandom assignmentRatingRating AgencyRatio of investmentsRaw materialsReal Estate Investment Trust (REIT) Real timeRealized interest rate RecapitalizationRecognition of incomeRecourseRecoveryRecyclingRed chipRed HerringRedeem/redemptionRefineryRegistered securitiesRegistration statementRegistrarREITRelative strength indexRent-seekingRepackaged asset vehicles Replacement costRepresentations and warranties Repurchase agreementResidual assetResidual valueResistance lineResolution Trust Corporation (RTC) Restricted license bankRestricted securitiesRestructuringResumption of tradingRetail players (= retail investors) Retail Price Index (RPI)Retained earningsReturn on assetReturn on capital employedReturn on equityRevenue-sharingRevolving creditRight issueRights to the priority distributions Ring-fencingRisk factorRisk managementRisk premiumRisk rated ratioROARoadshowROCERoller-coaster swapROERound lotsRPIRSIRule 144AS&PS&P 500 IndexSales returnSamurai bondsSEAQSEATSSECSecond junior subordinated debenture Second liner/second line stock Secondary offeringSector FundSecularSecured debtSecuritiesSecurities and Futures Commission Securities Exchange Commission Securities Exchange of Thailand SecuritizationSeed financingSeed stageSell shortSell-side analystSelling concessionSenior debtSeparate listingSettlementSettlement riskSFCShanghai Stock Exchange Shareholders' EquityShareholder valueSharesSharpe RatioShelf CompanyShelf registrationShell companyShenzhen Foreign Exchange Trading CentreShenzhen Stock ExchangeShort-term revolving letterShort (position)Short and medium term loansShort forwardShort sellingSidelined investorsSidelinerSight draftSIMEXSingapore International Monetary ExchangeSingapore Stock Exchange Singapore Straits Times Index Sinking fundSino-foreign joint ventureSmall CapSMESOEsSoft currencySoft landingSovereign riskSovereign rateSpecial stockSpin-offSponsorSpot marketSpot priceSpreadSprint periodStagflationStaggering maturitiesStakeholderStall speedStandard & PoorStartup financingStartup stageState-owned enterpriseState sharesStatic hedgingSterilizationStochastic processStock BrokerStock Exchange Alternative Trading SystemStock Exchange Automated Quotations SystemStock incentive schemeStock MarketStock Trader, Stock Trading Stockholm Options MarketStocksStop loss limitStop loss strategyStraddleStrangleStrategic InvestmentStrategic InvestorStrategic saleStreet priceStressed securitiesStrike priceStripped securitiesStructure-induced equilibrium Structured bondStructured financingStructured noteSubordinated debtSubordinated debt w/ revenue participation rightsSubparSunk costsSupply and marketing cooperatives SwapSwaptionSyndicated loanSynergySynthetic securitiesT/TTaiwan Weighted Stock IndexTake positionTARGET SystemTax benefitsTax haven jurisdictionTax rebateTaxable munisTelegraphic TransferTender bondTenorTerm sheetTerms of ReferenceThird linerTick sizeTight marketTime depositTime horizonTMTTokyo Grain ExchangeTokyo International Financial Futures ExchangeTokyo Stock ExchangeTokyo Sugar ExchangeToll revenue bondTop-downTop-up placingToronto Futures ExchangeToronto Stock ExchangeTracker Fund of Hong Kong (TraHK)Trade balanceTrade deficitTrade surplusTrancheTreasuryTreasury stripsTriangular debtTroughTrustee deedTurnoverTurnover ratioUmbrella fundUNUnappropriated profitsUnconditional and irrevocable letter of creditUncovered callUncovered optionUnderlyingUnderlying assetUnderwriterUnderwritingUnderwriting syndicate Undistributed profitUnilateral/bilateral agreement Unit trustUnitary board systemUnited NationsUniversal discount rates Unlisted securityUnsecured debtUnregulated issuerUpfront payment/feeUpfront premium payment Upside riskUptickUS Financial Firm/Institution US GAAPUS Investment BankUS TreasuryUse of proceedsUseful lifeUser-friendlyUser-pay principleUtilization rateValuationValue added taxValue-at-riskValue fundValue investmentVanilla bondsVariable contributionVariable equity return Variable-rate mortgageVelocityVenture capitalVertical mergerVertical spreadVery substantial acquisition Veto powerVideo conferenceVolatilityVolatility Scan Range (VSR) VolumeWACCWages payableWarrantWash saleWatch listWeak holdingsWealth managementWeighted Average Cost of Capital Wellington Stock ExchangeWhistleblowing policyWhitewash transactionWholly-owned subsidiaryWinnipeg Commodities ExchangeWire roomWithdrawal PlanWithholding taxWonWorking capitalWorkoutWorld BankWorld Trade Organization (WTO)WTOX/B (Ex-bonus)X/D (Ex-dividend)X/R (Ex-rights)X/W (Ex-warrants)XeroxYankee bondsYear-end dividendYieldYield curveYield curve swapYield to callYield to crashYield to MaturityYield to putYoYYTMZero cost optionZero coupon bondsZero coupon convertible collateralized securitiesZero coupon swapZero-sum gameZurich Stock ExchangeChinese资产担保证券（Asset Backed Securities的英文缩写）加速折旧承兑人；受票人； 接受人融通票据；担保借据应付帐款应收帐款合资格投资者；受信投资人指符合美国证券交易委员(SEC)条例，可参与一般美国非公开(私募)发行的部份机构和高净值个人投资者。

金融财务翻译

金融财务翻译

金融财务翻译【释义】金融财务Finance and finance【短语】1通用金融财务有限公司GE Capital Finance Ltd2金融财务安排monetary arrangement3金融财务经理Financial Managers4金融财务管理与控制Management Finance and Control5金融财务管理硕士MFM6通用金融财务GE Money Bank AG7金融财务词汇finance items8金融财务与管里Finance Accounting and Management9金融/财务经理Financial Managers【例句】1敏捷金融财务管理系统是为敏捷集团开发的财务管理系统。

Agile financial management system for agile development of the Group's financial management system.2而在商业应用中，金融财务只是基石，管理因素将变得更为重要。

When applied in business, the finances are the bedrock but the management factors become much more important.3你不能利用用杠杆原理，除非你受过财务教育或相关的金融培训。

And you should not use leverage unless you have the financial education or financial training to apply it.。

Managerial Finance gitman e12 ch08

Managerial Finance gitman e12 ch08

Solutions to ProblemsNote: The MACRS depreciation percentages used in the following problems appear in Chapter 3,Table 3.2. The percentages are rounded to the nearest integer for ease in calculation.For simplification, five-year-lived projects with 5 years of cash inflows are typically used throughout this chapter. Projects with usable lives equal to the number of years of cash inflows are also included in the end-of-chapter problems. It is important to recall from Chapter 3 that, under the Tax Reform Act of 1986, MACRS depreciation results in n 1 years of depreciation for an n-year class asset. This means that in actual practice projects will typically have at least one year of cash flow beyond their recovery period.P8-1. LG 1: Classification of expendituresBasica. Operating expenditure – lease expires within one yearb. Capital expenditure – patent rights exist for many yearsc. Capital expenditure – research and development benefits last many yearsd. Operating expenditure – marketable securities mature in under one yeare. Capital expenditure – machine will last over one yearf. Capital expenditure – building tool will last over one yearg. Capital expenditure – building will last for more than one yearh. Operating expenditure – market changes require obtaining another report within a yearP8-2. LG 2: Basic terminologyBasicSituation A Situation B Situation Ca. mutually exclusive mutually exclusive independentb. unlimited unlimited capital rationingc. ranking accept-reject rankingd. conventional nonconventional conventional (2&4)nonconventional (1&3)P8-3. LG 3: Relevant cash flow pattern fundamentalsIntermediatea.Year Cash FlowChapter 8 Capital Budgeting Cash Flows 189b.c.P8-4. LG 3: Expansion versus replacement cash flowsIntermediatea.Year Relevant CashFlowsInitial investment ($28,000)1 4,0002 6,0003 8,0004 10,0005 4,000b. An expansion project is simply a replacement decision in which all cash flows from the oldasset are zero.P8-5. LG 3: Sunk costs and opportunity costsBasica. The $1,000,000 development costs should not be considered part of the decision to go aheadwith the new production. This money has already been spent and cannot be retrieved so it is asunk cost.b. The $250,000 sale price of the existing line is an opportunity cost. If Masters Golf Productsdoes not proceed with the new line of clubs they will not receive the $250,000.190 Gitman •Principles of Managerial Finance, Twelfth Editionc.P8-6. LG 3: Sunk costs and opportunity costsIntermediatea. Sunk cost—The funds for the tooling had already been expended and would not change, nomatter whether the new technology would be acquired or not.b. Opportunity cost—The development of the computer programs can be done withoutadditional expenditures on the computers; however, the loss of the cash inflow from theleasing arrangement would be a lost opportunity to the firm.c. Opportunity cost—Covol will not have to spend any funds for floor space but the lost cashinflow from the rent would be a cost to the firm.d. Sunk cost—The money for the storage facility has already been spent, and no matter whatdecision the company makes there is no incremental cash flow generated or lost from thestorage building.e. Opportunity cost—Foregoing the sale of the crane costs the firm $180,000 of potential cashinflows.P8-7. LG 3: Personal finance: Sunk and opportunity cash flowsa. The sunk costs or cash outlays are expenditures that have been made in the past and have noeffect on the cash flows relevant to a current situation. The cash outlays done before Davidand Ann decided to rent out their home would be classified as sunk costs. An opportunitycost or cash flow is one that can be realized from an alternative use of an existing asset. Here,David and Ann have decided to rent out their home, and all the costs associated with gettingthe home in ―rentable‖ condition would be re levant.b.Sunk costs (cash flows):Replace water heaterReplace dish washerMiscellaneous repairs and maintenanceOpportunity costs cash flows:Rental incomeAdvertisingHouse paint and power washP8-8. LG 4: Book valueBasicAsset InstalledCostAccumulatedDepreciationBookValueA $ 950,000 $ 674,500 $275,500B 40,000 13,200 26,800C 96,000 79,680 16,320D 350,000 70,000 280,000E 1,500,000 1,170,000 330,000Chapter 8 Capital Budgeting Cash Flows 191P8-9. LG 4: Book value and taxes on sale of assetsIntermediatea. Book value = $80,000 - (0.71 ⨯ $80,000)= $23,200b.Sale Price CapitalGainTax onCapital GainDepreciationRecoveryTax onRecoveryTotalTax$100,000 $20,000 $8,000 $56,800 $22,720 $30,72056,000 0 0 32,800 13,120 13,12023,200 0 0 0 0 015,000 0 0 (8,200) (3,280) (3,280)P8-10. LG 4: Tax calculationsIntermediateCurrent book value = $200,000 - [(0.52 ⨯ ($200,000)] = $96,000(a) (b) (c) (d)Capital gain $ 20,000 $ 0 $0 $ 0Recaptured depreciation 104,000 54,000 0 (16,000)Tax on capital gain 8,000 0 0 0Tax on depreciationRecovery 41,600 21,600 0 (6,400)Total tax $ 49,600 $21,600 $0 ($6,400)P8-11. LG 4: Change in net working capital calculationBasica.Current Assets Current LiabilitiesCash +$15,000 Accounts payable +$90,000Accounts receivable +150,000 Accruals + 40,000Inventory - 10,000Net change $155,000 $130,000Net working capital = current assets - current liabilities∆NWC = $155,000 - $130,000∆NWC = $25,000b. Analysis of the purchase of a new machine reveals an increase in net working capital. Thisincrease should be treated as an initial outlay and is a cost of acquiring the new machine.c. Yes, in computing the terminal cash flow, the net working capital increase should be reversed.192 Gitman •Principles of Managerial Finance, Twelfth EditionP8-12. LG 4: Calculating initial investmentIntermediatea. Book value = $325,000 ⨯ (1- 0.20 – 0.32) = $325,000 ⨯ 0.48 = $156,000b. Sales price of old equipment $200,000Book value of old equipment 156,000Recapture of depreciation $ 44,000Taxes on recapture of depreciation = $44,000 ⨯ 0.40 = $17,600After-tax proceeds = $200,000 - $17,600 = $182,400c. Cost of new machine $ 500,000Less sales price of old machine (200,000)Plus tax on recapture of depreciation 17,600Initial investment $ 317,600P8-13. LG 4: Initial investment–basic calculationIntermediateInstalled cost of new asset =Cost of new asset $ 35,000+ Installation costs 5,000Total installed cost (depreciable value) $40,000 After-tax proceeds from sale of old asset =Proceeds from sale of old asset ($25,000)+ Tax on sale of old asset 7,680Total after-tax proceeds-old asset ($17,320) Initial investment $22,680Book value of existing machine = $20,000 ⨯ (1 - (0.20 + 0.32 + 0.19)) = $5,800 Recaptured depreciation = $20,000 - $5,800 = $14,200Capital gain = $25,000 - $20,000 = $5,000Tax on recaptured depreciation = $14,200 ⨯ (0.40) =$5,680Tax on capital gain = $5,000 ⨯ (0.40) = 2,000Total tax =$7,680Chapter 8 Capital Budgeting Cash Flows 193P8-14. LG 4: Initial investment at various sale pricesIntermediate(a) (b) (c) (d)Installed cost of new asset:Cost of new asset $24,000 $24,000 $24,000 $24,000+ Installation cost 2,000 2,000 2,000 2,000Total installed-cost 26,000 26,000 26,000 26,000 After-tax proceeds from saleof old assetProceeds from saleof old asset (11,000) (7,000) (2,900) (1,500)+ Tax on sale of old asset* 3,240 1,640 0 (560)Total after-tax proceeds (7,760) (5,360) (2,900) (2,060) Initial investment $18,240 $20,640 $23,100 $23,940Book value of existing machine = $10,000 ⨯ [1 - (0.20 - 0.32 -0.19)] = $2,900*Tax Calculations:a. Recaptured depreciation =$10,000 - $2,900 = $7,100Capital gain =$11,000 - $10,000 =$1,000Tax on ordinary gain =$7,100 ⨯ (0.40) =$2,840Tax on capital gain =$1,000 ⨯ (0.40) = 400Total tax =$3,240b. Recaptured depreciation =$7,000 - $2,900 =$4,100Tax on ordinary gain =$4,100 ⨯ (0.40) =$1,640c. 0 tax liabilityd. Loss on sale of existing asset =$1,500 - $2,900 =($1,400)Tax benefit =-$ 1,400 ⨯ (0.40) = $ 560P8-15. LG 4: Calculating initial investmentChallengea. Book value = ($60,000 ⨯ 0.31) = $18,600b. Sales price of old equipment $35,000Book value of old equipment 18,600Recapture of depreciation $16,400Taxes on recapture of depreciation = $16,400 ⨯ 0.40 = $6,560Sale price of old roaster $35,000Tax on recapture of depreciation (6,560)After-tax proceeds from sale of old roaster $28,440194 Gitman •Principles of Managerial Finance, Twelfth Editionc. Changes in current asset accountsInventory $ 50,000Accounts receivable 70,000Net change $ 120,000Changes in current liability accountsAccruals $ (20,000)Accounts payable 40,000Notes payable 15,000Net change $ 35,000Change in net working capital $ 85,000d. Cost of new roaster $130,000Less after-tax proceeds from sale of old roaster -28,440Plus change in net working capital 85,000Initial investment $186,560P8-16. LG 4: DepreciationBasicDepreciation ScheduleYear Depreciation Expense1 $68,000 ⨯ 0.20 = $13,6002 68,000 ⨯ 0.32 = 21,7603 68,000 ⨯ 0.19 = 12,9204 68,000 ⨯ 0.12 = 8,1605 68,000 ⨯ 0.12 = 8,1606 68,000 ⨯ 0.05 = 3,400P8-17. LG 5: Incremental operating cash inflowsIntermediatea. Incremental profits before depreciation and tax =$1,200,000 - $480,000=$720,000 each yearb.Year (1) (2) (3) (4) (5) (6)PBDT $720,000 $720,000 $720,000 $720,000 $720,000 $720,000Depr. 400,000 640,000 80,000 240,000 240,000 100,000NPBT 320,000 80,000 340,000 480,000 480,000 620,000Tax 128,000 32,000 136,000 192,000 192,000 248,000NPAT 192,000 48,000 204,000 288,000 288,000 372,000Chapter 8 Capital Budgeting Cash Flows 195 c.Cash flow(1)$592,000(2)$688,000(3)$584,000(4)$528,000(5)$528,000(6)$472,000(NPAT + depreciation)PBDT = Profits before depreciation and taxesNPBT = Net profits before taxesNPAT = Net profits after taxesP8-18 LG5: Personal finance: Incremental operating cash inflowsRichard and Linda ThomsonIncremental Operating Cash FlowsReplacement of John Deere Riding MowerYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Savings from new and improved mower $500 $ 500 $500 $500 $500 —Annual maintenance cost 120 120 120 120 120 0 Depreciation* 360 576 342 216 216 90 Savings (loss) before taxes 20 (196) 38 164 164 (90) Taxes (40%) 8 (78) 15 66 66 (36) Savings (loss) after taxes 12 (118) 23 98 98 (54) Depreciation 360 576 342 216 216 90 Incremental operating cash flow $372 $ 458 $365 $314 $314 $ 36*MACRS Depreciation ScheduleYear Base MACRS DepreciationYear 1 $1,800 20.0% $360Year 2 1,800 32.0% 576Year 3 1,800 19.0% 342Year 4 1,800 12.0% 216Year 5 1,800 12.0% 216Year 6 1,800 5.0% 90196 Gitman •Principles of Managerial Finance, Twelfth EditionP8-19. LG 5: Incremental operating cash inflows–expense reductionIntermediateYear (1) (2) (3) (4) (5) (6) Incrementalexpense savings $16,000 $16,000 $16,000 $16,000 $16,000 $ 0 Incremental profitsbefore dep. and taxes*16,000 16,000 16,000 16,000 16,000 0 Depreciation 9,600 15,360 9,120 5,760 5,760 2,400 Net profitsbefore taxes 6,400 640 6,880 10,240 10,240 -2,400 Taxes 2,560 256 2,752 4,096 4,096 -960 Net profitsafter taxes 3,840 384 4,128 6,144 6,144 -1,440 Operating cashinflows**13,440 15,744 13,248 11,904 11,904 960 *Incremental profits before depreciation and taxes will increase the same amount as the decrease in expenses.**Net profits after taxes plus depreciation expense.P8-20. LG 5: Incremental operating cash inflowsIntermediatea.Year RevenueExpenses(excludingdepreciationand interest)Profits beforeDepreciationand TaxesDepre-ciationNetProfitsbeforeTaxes TaxesNetProfitsafter TaxOperatingCashInflowsNew Lathe1 $40,000 $30,000 $10,000 $2,000 $8,000 $3,200 $4,800 $6,8002 41,000 30,000 11,000 3,200 7,800 3,120 4,680 7,8803 42,000 30,000 12,000 1,900 10,100 4,040 6,060 7,9604 43,000 30,000 13,000 1,200 11,800 4,720 7,080 8,2805 44,000 30,000 14,000 1,200 12,800 5,120 7,680 8,8806 0 0 0 500 (500) (200) (300) 200 Old Lathe1–5 $35,000 $25,000 $10,000 0 $10,000 $4,000 $6,000 $6,000b. Calculation of incremental cash inflowsYear New Lathe Old Lathe Incremental Cash Flows1 $6,800 $6,000 $8002 7,880 6,000 1,8803 7,960 6,000 1,9604 8,280 6,000 2,2805 8,880 6,000 2,880Chapter 8 Capital Budgeting Cash Flows 1976 200 0 200c.P8-21. LG 5: Determining incremental operating cash flowsIntermediatea.1 2 3 4 5 6Revenues:(000)New buses $1,850 $1,850 $1,830 $1,825 $1,815 $1,800Old buses 1,800 1,800 1,790 1,785 1,775 1,750 Incremental revenue $ 50 $50 $ 40 $ 40 $ 40 $ 50Expenses: (000)New buses $ 460 $ 460 $ 468 $ 472 $ 485 $ 500Old buses 500 510 520 520 530 535 Incremental expense $ (40) $ (50) $ (52) $ (48) $ (45) $ (35)Depreciation: (000)New buses $ 600 $ 960 $ 570 $ 360 $ 360 $ 150Old buses 324 135 0 0 0 0Incremental depr. $ 276 $ 825 $ 570 $ 360 $ 360 $ 150Incremental depr. taxsavings @40% 110 330 228 144 144 60 Net Incremental Cash FlowsCash flows: (000)Revenues $ 50 $ 50 $ 40 $ 40 $ 40 $ 50Expenses 40 50 52 48 45 35Less taxes @40% (36) (40) (37) (35) (34) (34)Depr. tax savings 110 330 228 144 144 60 Net operating cashinflows $164 $390 $283 $197 $195 $111P8-22. LG 6: Terminal cash flows—various lives and sale pricesChallengea.After-tax proceeds from sale of new asset =3-year*5-year*7-year*Proceeds from sale of proposed asset $10,000 $10,000 $10,000 ± Tax on sale of proposed asset*+16,880 -400 -4,000Total after-tax proceeds-new $26,880 $9,600 $ 6,000 + Change in net working capital +30,000 +30,000 +30,000Terminal cash flow $56,880 $39,600 $36,000*1. Book value of asset = [1- (0.20 + 0.32 + 0.19)] ⨯ $180,000 = $52,200Proceeds from sale = $10,000$10,000 - $52,200 = ($42,200) loss$42,200 ⨯ (0.40) = $16,880 tax benefit2. Book value of asset = [1 - (0.20 + 0.32 + 0.19 + 0.12 + 0.12)] ⨯ $180,000 = $9,000$10,000 - $9,000 = $1,000 recaptured depreciation$1,000 ⨯ (0.40) = $400 tax liability3. Book value of asset = $0$10,000 - $0 = $10,000 recaptured depreciation$10,000 ⨯ (0.40) = $4,000 tax liabilityb. If the usable life is less than the normal recovery period, the asset has not been depreciatedfully and a tax benefit may be taken on the loss; therefore, the terminal cash flow is higher.c.(1)(2)After-tax proceeds from sale of new asset =Proceeds from sale of new asset $ 9,000 $170,000+ Tax on sale of proposed asset*0 (64,400)+ Change in net working capital +30,000 +30,000Terminal cash flow $39,000 $135,600* 1. Book value of the asset = $180,000 ⨯ 0.05 = $9,000; no taxes are due2. Tax = ($170,000 - $9,000) ⨯ 0.4 = $64,400.d. The higher the sale price, the higher the terminal cash flow.P8-23. LG 6: Terminal cash flow–replacement decisionAfter-tax proceeds from sale of new asset =Proceeds from sale of new machine $75,000- Tax on sale of new machine l(14,360)Total after-tax proceeds-new asset $60,640- After-tax proceeds from sale of old assetProceeds from sale of old machine (15,000)+ Tax on sale of old machine2 6,000Total after-tax proceeds-old asset (9,000)+ Change in net working capital 25,000Terminal cash flow $76,640l Book value of new machine at end of year.4:[1 - (0.20 + 0.32+ 0.19 + 0.12) ⨯ ($230,000)] =$39,100$75,000 - $39,100 =$35,900 recaptured depreciation$35,900 ⨯ (0.40) =$14,360 tax liability2 Book value of old machine at end of year 4:$0$15,000 - $0 =$15,000 recaptured depreciation$15,000 ⨯ (0.40) =$6,000 tax benefitP8-24. LG 4, 5, 6: Relevant cash flows for a marketing campaignChallengeMarcus TubeCalculation of Relevant Cash Flow($000)Calculation of Net Profits after Taxes and Operating Cash Flow:with Marketing Campaign2010 2011 2012 2013 2014 Sales $20,500 $21,000 $21,500 $22,500 $23,500 CGS (@ 80%) 16,400 16,800 17,200 18,000 18,800 Gross profit $ 4,100 $ 4,200 $ 4,300 $ 4,500 $ 4,700 ss: Less: Operating expensesGeneral andadministrative(10% of sales) $ 2,050 $ 2,100 $ 2,150 $ 2,250 $ 2,350 Marketing campaign 150 150 150 150 150Depreciation 500 500 500 500 500 Total operatingexpenses 2,700 2,750 2,800 2,900 3,000 Net profitbefore taxes $ 1,400 $ 1,450 $ 1,500 $ 1,600 $ 1,700 Less: Taxes 40% 560 580 600 640 680 Net profitafter taxes $ 840 $ 870 $ 900 $ 960 $ 1,020 +Depreciation 500 500 500 500 500 Operating CF $ 1,340 $ 1,370 $ 1,400 $ 1,460 $ 1,520Without Marketing CampaignYears 2007–2011Net profit after taxes $ 900+ Depreciation 500Operating cash flow $1,400Relevant Cash Flow($000)Year With MarketingCampaignWithout MarketingCampaignIncrementalCash Flow2010 $1,340 $1,400 $(60) 2011 1,370 1,400 (30) 2012 1,400 1,400 0 2013 1,460 1,400 60 2014 1,520 1,400 120P8-25. LG 4, 5: Relevant cash flows–no terminal valueChallengea. Installed cost of new assetCost of new asset $76,000+Installation costs 4,000Total cost of new asset $80,000-After-tax proceeds from sale of old assetProceeds from sale of old asset (55,000)+ Tax on sale of old asset* 16,200Total proceeds, sale of old asset (38,800)Initial investment $41,200*Book value of old machine:[1 - (0.20 + 0.32 + 0.19)] ⨯ $50,000 =$14,500$55,000 - $14,500 =$40,500 gain on asset$35,500 recaptured depreciation ⨯ 0.40 =$14,200$5,000 capital gain ⨯ 0.40 = 2,000Total tax on sale of asset =$16,200b.Calculation of Operating Cash FlowYear (1) (2) (3) (4) (5) (6)Old MachinePBDT $14,000 $16,000 $20,000 $18,000 $14,000 $ 0Depreciation 6,000 6,000 2,500 0 0 0NPBT $ 8,000 $10,000 $17,500 $18,000 $14,000 0Taxes 3,200 4,000 7,000 7,200 5,600 0NPAT $ 4,800 $ 6,000 $10,500 $10,800 $ 8,400 $ 0Depreciation 6,000 6,000 2,500 0 0 0Cash flow $10,800 $12,000 $13,000 $10,800 $ 8,400 $ 0New MachinePBDT $30,000 $30,000 $30,000 $30,000 $30,000 $ 0Depreciation 16,000 25,600 15,200 9,600 9,600 4,000NPBT $14,000 $ 4,400 $14,800 $20,400 $20,400 -$4,000Taxes 5,600 1,760 5,920 8,160 8,160 -1,600NPAT $ 8,400 $ 2,640 $ 8,880 $12,240 $12,240 -$2,400Depreciation 16,000 25,600 15,200 9,600 9,600 4,000Cash flow $24,400 $28,240 $24,080 $21,840 $21,840 $1,600IncrementalAfter-taxCash flows $13,600 $16,240 $11,080 $11,040 $13,440 $1,600c.P8-26. LG 4, 5, 6: Integrative—determining relevant cash flowsChallengea. Initial investment:Installed cost of new asset =Cost of new asset $105,000+ Installation costs 5,000Total cost of new asset $110,000 - After-tax proceeds from sale of old asset =Proceeds from sale of old asset (70,000)+ Tax on sale of old asset* 16,480Total proceeds from sale of old asset (53,520) + Change in working capital 12,000 Initial investment $ 68,480*Book value of old asset:[1 - (0.20 + 0.32)] ⨯ $60,000 =$28,800$70,000 - $28,800 = $41,200 gain on sale of asset$31,200 recaptured depreciation ⨯ 0.40 =$12,480$10,000 capital gain ⨯ 0.40 = 4,000Total tax of sale of asset =$16,480b.Calculation of Operating Cash InflowsYear Profits beforeDepreciationand Taxes DepreciationNet Profitsbefore Taxes TaxesNet Profitsafter TaxesOperatingCashInflowsNew Grinder1 $43,000 $22,000 $21,000 $8,400 $12,600 $34,6002 43,000 35,200 7,800 3,120 4,680 39,8803 43,000 20,900 22,100 8,840 13,260 34,1604 43,000 13,200 29,800 11,920 17,880 31,0805 43,000 13,200 29,800 11,920 17,880 31,0806 0 5,500 -5,500 -2,200 -3,300 2,200 Existing Grinder1 $26,000 $11,400 $14,600 $5,840 $8,760 $20,1602 24,000 7,200 16,800 6,720 10,080 17,2803 22,000 7,200 14,800 5,920 8,880 16,0804 20,000 3,000 17,000 6,800 10,200 13,2005 18,000 0 18,000 7,200 10,800 10,8006 0 0 0 0 0 0Calculation of Incremental Cash InflowsYear New Grinder Existing Grinder Incremental OperatingCash Flow1 $34,600 $20,160 $14,4402 39,880 17,280 22,6003 34,160 16,080 18,0804 31,080 13,200 17,8805 31,080 10,800 20,2806 2,200 0 2,200c. Terminal cash flow:After-tax proceeds from sale of new asset =Proceeds from sale of new asset $29,000-Tax on sale of new asset* (9,400)Total proceeds from sale of new asset 19,600 -After-tax proceeds from sale of old asset =Proceeds from sale of old asset 0+ Tax on sale of old asset 0Total proceeds from sale of old asset 0 + Change in net working capital 12,000 Terminal cash flow $31,600 *Book value of asset at end of year 5 = $5,500$29,000 - $5,500 = $23,500 recaptured depreciation$23,500 ⨯ 0.40 = $9,400d. Year 5 relevant cash flow:Operating cash flow $20,280Terminal cash flow 31,600Total inflow $51,880P8-27 LG 4, 5,6: Personal finance: Determining relevant cash flows for a cash budgetJan and DeanaCash Flow BudgetPurchase of Boata. Initial investmentTotal cost of new boat Add: Taxes (6.5%)Initial investment $ (70,000) (4,550) $ (74,550)b. Operating cash flows Year 1 Year 2 Year 3 Year 4Maint. & repair 12 months at $800 $ (9,600) $ (9,600) $ (9,600) $ (9,600) Docking fees 12 months at $500 $ (6,000) $ (6,000) $ (6,000) $ (6,000) Operating cash flows $ (15,600) $(15,600) $(15,600) $(15,600) c. Terminal cash flow—endof Year 4Proceeds from the sale of boat $ 40,000 d. Summary of cash flows Cash FlowYear zero End of Year 1 End of Year 2 End of Year 3 End of Year 4 $(74,550) $(15,600) $(15,600) $(15,600) $ 24,400e. The ownership of the boat is virtually just an annual outflow of money. Across the four years,$96,950 will be spent in excess of the anticipated sales price in Year 4. Over the same timeperiod, the disposable income is only $96,000. Consequently, if the costs exceed the expecteddisposable income. If cash flows were adjusted for their timing, and noting that the proceedsfrom the sale of the new boat comes in first at the end of Year 4, Jan and Deana are in aposition where they will have to increase their disposable income in order to accommodateboat ownership. If a loan is needed, the monthly interest payment would be another burden.However, there is no attempt here to measure satisfaction of ownership.P8-28. LG 4, 5, 6: Integrative—determining relevant cash flowsChallengea.Initial Investment A BInstalled cost of new assetCost of new asset $ 40,000 $ 54,000+ Installation costs 8,000 6,000Total proceeds, sale of new asset 48,000 60,000 - After-tax proceeds from sale of old assetProceeds from sale of old asset (18,000) (18,000) + Tax on sale of old asset * 3,488 3,488Total proceeds, sale of old asset (14,512) (14,512) + Change in working capital 4,000 6,000 Initial investment $37,488 $51,488 *Book value of old asset:[1 - (0.20 + 0.32 + 0.19)] ⨯ ($32,000) = $9,280b.Calculation of Operating Cash InflowsYearProfitsbeforeDepreciationand TaxesDepre-ciationNet ProfitsbeforeTaxes TaxesNet ProfitsafterTaxesOperatingCashInflowsHoist A1 $21,000 $9,600 $11,400 $4,560 $6,840 $16,4402 21,000 15,360 5,640 2,256 3,384 18,7443 21,000 9,120 11,880 4,752 7,128 16,2484 21,000 5,760 15,240 6,096 9,144 14,9045 21,000 5,760 15,240 6,096 9,144 14,9046 0 2,400 -2,400 -960 -1,440 960 Hoist B1 $22,000 $12,000 $10,000 $4,000 $6,000 18,0002 24,000 19,200 4,800 1,920 2,880 22,0803 26,000 11,400 14,600 5,840 8,760 20,1604 26,000 7,200 18,800 7,520 11,280 18,4805 26,000 7,200 18,800 7,520 11,280 18,4806 0 3,000 -3,000 -1,200 -1,800 1,200 Existing Hoist1 $14,000 $3,840 $10,160 $4,064 $6,096 $9,9362 14,000 3,840 10,160 4,064 6,096 9,9363 14,000 1,600 12,400 4,960 7,440 9,0404 14,000 0 14,000 5,600 8,400 8,4005 14,000 0 14,000 5,600 8,400 8,4006 0 0 0 0 0 0Calculation of Incremental Cash InflowsYear Hoist A Hoist B Existing Hoist Hoist A Hoist B1 $16,440 $18,000 $9,936 $6,504 $8,0642 18,744 22,080 9,936 8,808 12,1443 16,248 20,160 9,040 7,208 11,1204 14,904 18,480 8,400 6,504 10,0805 14,904 18,480 8,400 6,504 10,0806 960 1,200 0 960 1,200c. Terminal cash flow:(A) (B)After-tax proceeds form sale of new assetProceeds from sale of new asset $12,000 $20,000- Tax on sale of new asset l (3,840) (6,800) Total proceeds-new asset 8,160 13,200 - After-tax proceeds from sale of old assetProceeds from sale of old asset (1,000) (1,000)+ Tax on sale of old asset2400 400 Total proceeds-old asset (600) (600) + Change in net working capital 4,000 6,000 Terminal cash flow $11,560 $18,600 1 Book value of Hoist A at end of Year 5 = $2,400$12,000 - $2,400 = $9,600 recaptured depreciation$9,600 ⨯ 0.40 = $3,840 taxBook value of Hoist B at end of Year 5 = $3,000$20,000 - $3,000 = $17,000 recaptured depreciation$17,000 ⨯ 0.40 = $6,800 tax2 Book value of existing hoist at end of Year 5 = $0$1,000 - $0 = $1,000 recaptured depreciation$1,000 ⨯ 0.40 = $400 taxYear 5 relevant cash flow—Hoist A:Operating cash flow $ 6,504Terminal cash flow 11,560Total inflow $18,064Year 5 relevant cash flow—Hoist B:Operating cash flow $10,080Terminal cash flow 18,600Total inflow $28,680d.P8-29. Ethics problemIntermediateThe likely explanation is that loan officers and bank credit analysts are often more preoccupied with a firm’s ability to repa y the loan and how soon rather than internal rate of return of theproject or its discounted cash flow. Another reason is maybe that owners or managers of small businesses may not have sufficient skills to conduct the more tedious financial analysis.。

金融专业英语词汇大全

金融专业英语词汇大全

金融专业英语词汇大全一、基本金融术语1. 金融（Finance）：指货币的筹集、分配和管理活动。

2. 银行（Bank）：提供存款、贷款、支付结算等金融服务的机构。

3. 证券（Securities）：代表财产所有权或债权的凭证，如股票、债券等。

4. 投资（Investment）：将资金投入到某个项目或资产，以获取收益的行为。

5. 债务（Debt）：借款人向债权人承诺在一定期限内偿还本息的义务。

6. 股票（Stock）：股份有限公司发行的，代表股东对公司所有权和收益分配权的凭证。

7. 债券（Bond）：债务人向债权人发行的，承诺按一定利率支付利息并在到期日偿还本金的债务凭证。

8. 利率（Interest Rate）：资金的价格，反映资金借贷的成本。

9. 汇率（Exchange Rate）：一种货币兑换另一种货币的比率。

10. 通货膨胀（Inflation）：货币购买力下降，物价普遍持续上涨的现象。

二、金融衍生品词汇1. 金融衍生品（Financial Derivatives）：基于现货金融工具派生出来的新型金融工具。

2. 期货（Futures）：双方约定在未来某一时间、按约定的价格买卖某种标的物的合约。

3. 期权（Options）：买卖双方在未来一定期限内，按约定价格买入或卖出某种标的物的权利。

4. 掉期（Swap）：双方约定在未来某一时间，相互交换一系列现金流的合约。

5. 远期合约（Forward Contract）：双方约定在未来某一时间、按约定的价格买卖某种标的物的合约。

三、金融机构及监管部门词汇1. 中央银行（Central Bank）：国家金融政策制定和执行的机构，如中国人民银行。

2. 商业银行（Commercial Bank）：以盈利为目的，提供存款、贷款、支付结算等金融服务的银行。

3. 证券公司（Securities Company）：从事证券经纪、投资咨询、资产管理等业务的金融机构。

Managerial Finance -Summary

Managerial Finance -Summary

l u 1 (1 T ) D / E
re , u R F u ( rm R F )
re , l rF u u (1 T ) D / E ( rm rF ) u ( rm rF ) u (1 T ) D / E ( rm rF )
Capital Budgeting (continued)
• NPV
– This discounts the project’s cash flows at its cost of capital and sums everything up. CF0 is negative if it represents initial investment. CF NPV CF (1 r )
•
If you are going to use Calculator during the exam, you still have to show your work to demonstrate that you understand the course materials. For example, if it is a question related to YTM, you would have to write out the YTM’s formula. Writing “press YTM calculator button to get your answer” WILL NOT WORK.
Managerial Finance Final Review
December 15th, 2011
• • •
• •
Final Exam Location: Emerson Hall 210 (different from the usual lecture room) There are 20 Multiple Choices (7 pages in total) The exam is open book. You can use the power point and word handouts, but not the problem set solutions or end of chapter solutions. You can also use a prepared cheat sheet including formulas. Professor Aybar encourages use of a cheat sheet. You have to show your work for any questions that require calculation. If you are going to use Excel during the exam and if you are planning to submit your Excel spreadsheet to show your work. Please plan accordingly to meet the following requirements:

MANAGERIAL FINANCE

MANAGERIAL FINANCE

MANAGERIAL FINANCED 1) Generally, a combination of two firms of unequal size is calledA) a holding company.B) a consolidation.C) a congeneric formation.D) a merger.T 2) The owners of a holding company can control significantly larger amounts of assets than they could acquire through mergers.F 3) One of the key attributes that makes a firm a good candidate for an LBO is that it has a relatively high level of debt and a low level of relatively liquid assets that could be used as loan collateral.C 4) In defending against hostile takeover attempts, a company will include provisions in the employment contracts of key executives that provide them with sizable compensation if the firm is taken over. This is called the ________ strategy.A) greenmailB) white knightC) golden parachuteD) shark repellentC 5) The combination of two or more companies to form a completely new corporation is aA) merger.B) holding company.C) consolidation.D) congeneric formation.F 6) A takeover target's management may not support a proposed takeover due to a very high tender offer.C 7) A spin-off results in the divested unitA) being sold to existing management resulting in new owners.B) being managed independently, but still under the ownership of the parent company.C) becoming an independent company with the same owners as the parent company.D) becoming an independent company with new owners.B 8) ________ is a pro rata cash settlement of creditor claims.A) An extensionB) A compositionC) A creditor control agreementD) A liquidationA 9) All of the following may be true about tender offers EXCEPTA) management has the exclusive right to accept the offer.B) defensive tactics may be taken to ward off the offer.C) they may add pressure to existing merger negotiations.D) they may be made without warning as an abrupt attempt at a corporate takeover.F 10) The primary causes of business failure are inventory mismanagement, poor marketing campaigns, and corporate theft.T 11) The overriding goal for merging is the maximization of the owners' wealth as reflected in the acquirer's share price.T 12) The ratio of exchange in market price indicates the market price per share of the acquiring firm paid for each dollar of market price per share of the target firm.F 13) A strategic merger is a merger transaction undertaken with the goal of restructuring the acquired company in order to improve its cash flow and unlock its hidden value.T 14) The tax loss carryforward benefits can be used in mergers but cannot be used in the formation of holding companies.D 15) The firm in a merger transaction that is being pursued as a takeover potential is called theA) acquiring company.B) conglomerate.C) holding company.D) target company.F 16) A financial merger is a merger transaction undertaken to achieve economies of scale.F 17) An attractive candidate for acquisition through leveraged buyout usually has a relatively high level of debt and a low level of "bankable" assets.F 18) Methods of divestiture include the sale of a product line to another firm, the sale of a unit to existing management, the donation of a unit to a charity, and the liquidation of assets.19) The selling of some of a firm's assets is calledA) divestiture.B) reverse merger.C) business failure.D) vertical segmentation.T 20) Acquisitions are especially attractive when the acquiring firm's stock price is high, because fewer shares must be exchanged to acquire the firm.T 21) The primary causes of business failure are mismanagement, poor economic conditions, and corporate maturity.T 22) Pyramiding is an arrangement among holding companies wherein one company controls others, thereby causing an even greater magnification of earnings and losses.F 23) Chapter 7 of the Bankruptcy Reform Act of 1978 outlines the procedures for reorgani zing a failed (or failing) firm, whether its petition is filed voluntarily or involuntarily.A 24) In ________, an assignment may be made by the creditors to a third party who then has the power to liquidate the firm's assets.A) a voluntary private liquidationB) a voluntary liquidation under Chapter Seven of the Bankruptcy Reform Act of 1978C) an involuntary private liquidationD) an involuntary liquidation under Chapter Seven of the Bankruptcy Reform Act of 1978C 25) The motive for divestiture is likely to be all of the following EXCEPTA)to streamline the corporation.B) to get rid of poorly performing operations.C) to head off bankruptcy.D) to generate cash for expansion of other product lines.B 26) A formal propos al to purchase a given number of shares of a firm's stock at a specified price is aA)stock purchase option.B)tender offer.C)right.D) warrant.T 27) LBOs are an example of a financial merger undertaken to create a high-debt private corporation with improved cash flow and value.28)A firm's current structure is as follows:Secured by fixed assets.Suggest a recapitalized capital structure that would reduce the debt/equity ratio (several solutions are feasible). Calculate the d/e ratio for the pre-reorganization capital structure and the post-reorganization capital structure.D 29) The use of a large amount of debt to finance the acquisition of other firms is aA) conglomerate merger.B) hostile merger.C) congeneric buyout.D) leveraged buyout.True 30) A method of acquisition in which the acquiring firm exchanges its shares of stock for shares of the target company according to a predetermined ratio is called a stock swap transaction.1) D2) TRUE3) FALSE4) C5) C6) FALSE7) C8) B9) A10) FALSE11) TRUE12) TRUE13) FALSE14) TRUE15) D16) FALSE17) FALSE18) FALSE19) A20) TRUE21) TRUE22) TRUE24) A25) C26) B27) TRUE28) A suggested recapitalization plan:Income bonds, preferred stock and common stock are included in stockholders' equity.29) D30) TRUE113CHAPTER 5Strategies in ActionLong-Term Objectives1.Long-term objectives represent the results expected from pursuing certain strategies.Ans: T Page: 1682.Objectives provide direction and allow for organizational synergy.Ans: T Page: 1683.Strategic objectives include those associated with growth in revenues, growth in earnings, higherdividends, larger profit margins and improved cash flow.Ans: F Page 1694.Strategic objectives include larger market share, quicker on-time delivery than rivals, quicker design-to-market times than rivals, lower costs than rivals, and wider geographic coverage than rivals. Ans: T Page: 1695.“If it ain’t broke, don’t fix it” refers to managing by crisis.Ans: F Page: 1706.The overall aim of the Balanced Scorecard is to balance financial objectives with strategic objectives. Ans: F Page: 1707.Since a combination strategy is not risky, many organizations pursue a combination of two or morestrategies simultaneously.Ans: F Page: 1718.Horizontal integration is seeking ownership or increased control over competitors.Ans: T Page 1739.Divestiture is selling all of a company’s asset s, in parts, for their tangible worth.Ans: F Page 17310.A chief executive officer is located in the divisional level of a large firm.Ans: F Page: 174I ntegration Strategies11.Gaining ownership or increased control over distributors or retailers is called forward integrationstrategy.Ans: T Page: 17412.Franchising is an effective means of implementing forward integration.Ans: T Page: 17413.A growing trend is for franchisers to buy out their part of the business from their franchisees.Ans: F Page: 17514.Forward integration strategy is especially effective when the availability of quality distributors is solimited as to offer a competitive advantage to those firms that integrate forward.Ans: T Page: 17515.A strategy of seeking ownership or increased con trol of a firm’s supplier is backward integration. Ans: T Page: 17516.If a firm’s present suppliers are expensive and unreliable in meeting the firm’s needs for parts,components and/or raw materials, the firm should pursue a horizontal integration strategy.Ans: F Page: 176Horizontal integration is an appropriate strategy when the competitors of an organization are doing poorly. Ans: F Page: 176Intensive Strategies17.Market penetration, market development, product development and joint venture are intensivestrategies.Ans: F Page: 17718.When the correlation between dollar sales and dollar marketing expenditures has historically beenlow, market penetration is an appropriate strategy.Ans: F Page: 17819.Market development includes introducing present products into new geographic areas.Ans: T Page: 17820.An appropriate strategy when an organization has excess production capacity is market development. Ans: T Page: 17821.Increasing advertising expenditures can be a market development strategy.Ans: F Page: 17922.Product development is a strategy that seeks increased sales by improving or modifying presentproducts or services.Ans: T Page: 17923.Product development is an appropriate strategy when an organization has successful products thatare in the maturity stage of the product life cycle.Ans: T Page: 179Diversification Strategies24.There are four basic types of diversification: concentric, conglomerate, forward and backward. Ans: F Page: 18025.Most companies favor related diversification strategies in order to exploit common use of a well-known brand name.Ans: T Page 18026.The related diversification strategy is effective when an organization has a weak management team. Ans: F Page: 18127.Unrelated diversification is an appropriate strateg y when an organization’s present channels ofdistribution can be used to market the new products to current customers.Ans: T Page: 18228.Donald Trump starting Trump University in 2005 is a good example of unrelated diversification. Ans: T Page: 18329.Unre lated diversification may be an especially effective strategy when an organization’s basicindustry is experiencing increasing annual sales and profits.Ans: F Page 184Defensive Strategies30.Retrenchment and turnaround are the same strategy.Ans: T Page: 18431.Although bankruptcy can be an effective type of retrenchment strategy, it does not allow firms toavoid major debt obligations and to void union contracts.Ans: F Page 18532.Chapter 7 bankruptcy is a liquidation procedure used only when a firm sees no hope of being able tooperate successfully or to obtain necessary creditor agreement.Ans: T Page: 18533.Chapter 9 bankruptcy applies to municipalities.Ans: T Page: 18534.Chapter 13 bankruptcy is similar to Chapter 11, but available only to large corporations.Ans: F Page: 18535.Divestiture is the selling of land a firm owns.Ans: F Page: 18636.Liquidation is often appropriate when retrenchment and divestiture have failed.Ans: T Page: 188Michael Porter’s Five Generic Strategies37.According to Porter, strategies allow organizations to gain competitive advantage from threedifferent bases: cost leadership, differentiation and integration.Ans: F Page: 18838.For consumers who are price sensitive, cost leadership emphasizes producing standardized productsat very low per-unit cost.Ans: T Page: 18839.A best-value strategy offers products or services to a wide range of customers at the lowest price onthe market.Ans: F Page 18840.A low-cost focus strategy offers products or services to a small range of customers at the lowest priceavailable on the market.Ans: T Page 18841.Jiffy Lube International would be a good example of a firm seeking the best-value focus strategy. Ans: F Page 18842.A differentiation strategy can only be achieved with a small target market.Ans: F Page 18943.Gaining a differentiation advantage is a primary reason for pursuing forward, backward, andhorizontal integration strategies.Ans: F Page 18944.A cost leadership strategy can be especially effective when most buyers use the product in the sameway.Ans: T Page 19045.The most effective differentiation bases are those that are hard or expensive for rivals to duplicate. Ans: T Page 19146.A differentiation strategy can be especially attractive when the industry has many different nichesand segments, thereby allowing a focuser to pick a competitively attractive niche suited to its own resources.Ans: F Page 19347.In a turbulent, high-velocity market, a lead-change strategy is best whenever the firm has theresources to pursue this approach.Ans: T Page 193Means for Achieving Strategies48.Cooperative arrangements and joint ventures between competitors are becoming increasinglypopular.Ans: T Page: 19349.Joint ventures tend to fail when managers who must collaborate daily in operating the venture arenot involved in forming or shaping the venture.Ans: T Page: 19650.Divestiture would be an appropriate strategy when a need exists to introduce a new technologyquickly.Ans: F Page: 196Merger/Acquisition51.An acquisition occurs when a large organization purchases a smaller one or vice versa.Ans: T Page: 19752.When an acquisition or merger is not desired by both parties, it is called a takeover or hostiletakeover.Ans: T Page: 19753.A leveraged buyout occurs when a firm’s management and other private investors use borrowedfunds to buy out the firm’s shareholders.Ans: T Page: 20054.First mover advantage refers to the benefits a firm may achieve by entering a new market ordeveloping a new product or service prior to rival firms.Ans: T Page: 200panies are avoiding outsourcing more and more because it is more expensive than traditionalmethods and it does not allow a firm to concentrate on core competencies.Ans: F Page: 201Strategic Management in Nonprofit and Government Organizations56.The nonprofit sector is America’s largest employer.Ans: T Page: 18557.Strategists in governmental organizations operate with far more strategic autonomy than theircounterparts in private firms.Ans: F Page: 187Strategic Management in Small Firms58.All sizes and types of organizations can utilize and benefit from strategic-management concepts andtechniques.Ans: T Page: 18759.Research shows strategic management in small firms is more formal than in large firms, but largefirms that engage in strategic management outperform those that do not.Ans: F Page: 187Multiple ChoiceLong-Term ObjectivesLong-term objectives are needed at which level(s) in an organization?1.Corporate2.Divisional3.Functional4.All of these5.None of thes eAns: d Page: 16860.Financial objectives involve all of the following except:1.growth in revenues.rger market share.3.higher dividends.4.greater return on investment.5. a rising stock price.Ans: b Page: 16961.What principle is based on the belief that the true measure of a really good strategist is the ability tosolve problems?1.Managing by crisis2.Managing by objectives3.Managing by extrapolation4.Managing by exception5.Managing by hope6.Ans: a Page: 17062.What principle is built on the idea that there is no general plan for which way to go and what to do?1.Managing by crisis2.Managing by extrapolation3.Managing by objectives4.Managing by hope5.Managing by exceptionAns: e Page: 17063.All of the following are important factors in the Balanced Scorecard except:1.customer service.2.employee morale.3.product quality.4.business ethics.5.stockholder equity.Ans: e Page: 17064.Which level of strategy is most likely not present in small firms?1.Corporate/company2.Functional3.Divisional4.Operational5.All of these are present in small firmsAns: c Page: 16065.All of the following are important factors in the Balanced Scorecard except:1.customer service.2.employee morale.3.product quality.4.business ethics.5.stockholder equity.Ans: e Page: 17266.Budget Rent-a-Car opening car rental shops in Wal-Mart stores is an example of which type ofstrategy?1.forward integration2.backward integration3.horizontal integration4.related diversification5.unrelated diversificationAns: a Page 17367.Goodyear Tire & Rubber Co. selling its North American farm-tire business to Titan International is anexample of which type of strategy?1.related diversification2.unrelated diversification3.retrenchment4.divestiture5.liquidationAns: d page 17368.Advanced Medical Optics using acquisitions to obtain all medical aspects of eye care, from lasersurgery to contacts to implants for all ages is an example of which type of strategy?1.forward integration2.backward integration3.horizontal integration4.market development5.product developmentAns: d Page 17369.Which of the following is most likely not included in the functional level of a small company?1.Finance2.Marketing3.R & D4.Department managers5.Human resource managersAns: d Page: 174Integration Strategies70.Integration strategies are sometimes collectively referred to as which of these strategies?1.Horizontal integration2.Diversification3.Vertical integration4.Stuck-in-the-middle5.Hierarchical integrationAns: c Page: 17471.Web sites to sell products directly to consumers are examples of which type of strategy?1.backward integration2.product development3.forward integration4.horizontal integration5.conglomerate diversificationAns: c Page: 17472.Which of these strategies is effective when the number of suppliers is small and the number ofcompetitors is large?1.Conglomerate diversification2.Forward integration3.Concentric diversification4.Backward integration5.Horizontal diversificationAns: d Page: 17673.Backward integration is effective in all of these except:1.when an organization competes in anindustry that is growing rapidly.2.when an organization has both capitaland human resources to manage the newbusiness of supplying its own rawmaterials.3.when an organization needs to acquire aneeded resource quickly.4.when the advantage of stable prices arenot important.5.when present suppliers have high profitmargins.Ans: d Page: 17674.What refers to a strategy of seeking ownership of or increased control over a firm’s competitors?1.Forward integration2.Conglomerate diversification3.Backward integration4.Horizontal integration5.Concentric diversificationAns: d Page: 17675.In which situation would horizontal integration be an especially effective strategy?1.When an organization can gain monopolistic characteristics in a particular area or regionwithout being challenged by the federal government for “tending substantially” to reducecompetition.2.When an organization competes in a slowing industry.3.When decreased economies of scale provide major competitive advantages.4.When an organization has neither the capital nor human talent needed to successfullymanage an expanded organization.5.When competitors are succeeding due to managerial expertise or having particularresources an organization possesses.Ans: a Page: 177Intensive Strategies76.Which strategy seeks to increase market share of present products or services in present marketsthrough greater marketing efforts.1.market penetration2.forward integration3.market development4.backward integration5.product developmentAns: a Page: 16777.When a domestic company first begins to export to India, it is an example of1.horizontal integration.2.backward integration.3.forward integration.5.market development.Ans: e Page: 17878.Which strategy generally entails large research and development expenditures?1.market penetration2.retrenchment3.forward integration4.product development5.divestitureAns: d Page: 17979.All of the following situations are conducive to market development except:1.when an organization competes in a high-growth industry.2.when an organization is very successful at what it does.3.when new untapped or unsaturated markets exist.4.when an organization has excess production capacity.5.when an organization’s basic industry is beco ming rapidly global in scope.Ans: a Page: 17980.Which strategy is appropriate when an organization competes in an industry characterized by rapidtechnological developments?1.retrenchment2.product development3.backward integration4.liquidation5.market penetrationAns: b Page: 179Diversification Strategies81.Adding new, unrelated products or services for present customers is called1.forward integration.2.related diversification.3.backward integration.4.conglomerate diversification.5.unrelated diversification.Ans: e Page: 18282.Which strategy should an organization use if it competes in a no-growth or a slow-growth industry.1.divestiture2.related diversification3.backward integration5.retrenchmentAns: b Page: 18183.Which of the following is not an example of when an organization should use an unrelateddiversification strategy?1.When revenues derived from an organization’s current products or services would increasesignificantly by adding the new unrelated, products.2.When an organization’s present channels of distribution can be used to market the newproducts to current customers.3.When the new products have counter-cyclical sales patterns compared to an organization’spresent products.4.When an organization competes in a highly competitive and/or a no-growth industry.5.When the organization has a strong management team.Ans: e Page: 18484.Adding new, unrelated products or services is called1.forward integration.2.related diversification.3.backward integration.4.conglomerate diversification.5.unrelated diversification.Ans: d Page: 184Defensive Strategies85.Win-Dixie closing one-third of its stores and eliminating 22,000 jobs in an attempt to emerge frombankruptcy would be an example of:1.divestiture.2.backward integration.3.liquidation.4.retrenchment.5.forward integration.Ans: d Page: 18486.What kind of strategy is retrenchment?1. A turnaround or reorganization strategy2.An expansion strategy3. A conglomerate strategy4.An intensive strategy5.An offensive strategyAns: a Page: 18487.Bankruptcy1.should never be used as a strategy.2.should be used only when one is legally forced to do so.3.can be an effective type of retrenchment strategy.4.should only be used for large firms.5.should only be used for small, private firms.Ans: c Page: 18588.Which chapter of the bankruptcy code applies to municipalities?1.Chapter 72.Chapter 83.Chapter 94.Chapter 125.Chapter 13Ans: c Page: 18589.The Family Farmer Bankruptcy Act of 1986 created1.Chapter 7.2.Chapter 8.3.Chapter 9.4.Chapter 12.5.Chapter 13.Ans: d Page: 18590.Retrenchment would be an effective strategy when an organization1.has shrunk so quickly that major internal reorganization is needed.2.is one of the stronger competitors in a given industry.3.is plagued by inefficiency, low profitability, poor employee morale and pressure fromstockholders to improve performance.4.has decided to capitalize on opportunities, maximize threats, take advantage of strengthsand overcome weaknesses.5.does not have a clearly distinctive competence and has failed to meet its objectives and goalsconsistently over time.Ans: c Page: 18591.What term refers to selling a division of an organization.1.Joint venture2.Divestiture3.Concentric diversification4.Liquidation5.Horizontal integrationAns: b Page: 18692.Which strategy should be implemented when a division is responsible for an organization’s overallpoor performance?1.backward integration2.divestiture3.forward integration4.cost leadership5.related diversificationAns: b Page: 18693.Selling all of a company’s assets in parts for their tangible worth is called1.joint venture.2.divestiture.3.concentric diversification.4.liquidation.5.unrelated integration.Ans: d Page: 18694.Which strategy would be effective when the stockholders of a firm can minimize their losses byselling the org anization’s assets.1.integration2.differentiation3.diversification4.cost leadership5.liquidationAns: e Page: 188Michael Porter’s Five Generic Strategies95.Under which strategy would you offer products or services to a wide range of customers at thelowest price available on the market?1.low-cost2.best-value3.low-cost focus4.best-value focus5.differentiationAns: b Page: 18896.According to Porter, which strategy offers products or services to a small range of customers at thelowest price available on the market?1.low-cost2.best-value3.low-cost focus4.best-value focus5.differentiationAns: c Page: 18897.Under which condition would a cost leadership strategy be especially effective?1.When there are many ways to differentiate the product or service and many buyers perceivethese differences as having value.2.When buyer needs and uses are diverse3.When few rival firms are following a similar approach4.When technological change is fast paced and competition revolves around rapidly evolvingproduct features.5.When the products of rival sellers are essentially identical and supplies are readily availablefrom any of several eager sellers.Ans: e Page: 19098.Under which condition would a differentiation strategy be especially effective?1.When the target market niche is large, profitable and growing2.When technological change is fast paced and competition revolves around rapidly evolvingproduct features.3.When industry leaders do not consider the niche to be crucial to their own success.4.When the industry has many different niches and segments, thereby allowing a company topick a competitively attractive niche suited to its own resources.5.When few, if any, other rivals are attempting to specialize in the same target segment. Ans: b Page: 192Means for Achieving Strategies99.What occurs when two or more companies form a temporary partnership or consortium for thepurpose of capitalizing on some opportunity.1.Retrenchment2. A joint venture3.Liquidation4.Forward integration5.DivestitureAns: b Page: 193100.All of the following are cooperative arrangements except:1.R&D partnerships.2.joint-bidding consortia.3.cross-licensing agreements.4.cross-manufacturing agreements.5.marketing plans.Ans: e Page: 193101.Which of the following is not a reason joint ventures fail?。

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between legal claims on the firm and real assets, dividend, interest, loan repayments
Wealth And Its Maximisation
Wealth, investment and the role of the financial manager
Limited companies are separate legal personalities to their owners (Saloman vs. Saloman Ltd - 1897) o Ownership is via Shares o Company acts via its directors-(Company „has no soul‟ therefore difficult to prove it acted with criminal intent.) o Easier to prosecute the directors o A shareholders liability to the company is limited to the nominal value of the share. (No recourse to the shareholders if the firm goes bust) Commercial companies formed under Companies Act 1985
/cms/s/0/db67381a-
a4b3-11de-92d4-00144feabdc0.html Factiva archive Microsoft to give shareholders a say on executive compensation Sept 19th 2009 /posts/125097206 8.shtml Irwin Stelzer on Executive Compensation:
Source: Principles of Corporate Finance, Brealey and Myers
Wealth And Its Maximisation
The Cash Cycle
raw material stock suppliers
WIP stock prodn. wages & expenses
(2) The Financial Manager (3) (1) (4a) (4b)
Firm’s Operations comprising real assets
Capital Markets: Investors with financial assets
Key: (1) (2) (3) (4a) (4b) cash from selling financial assets to investors cash used to purchase real assets cash generated from firms operations cash reinvested in the business cash returned to investors (interest, dividend, redemption of financial assets)
o

“The objective of our company is to increase the intrinsic value of our common stock. We are not in business to grow bigger for the sake of size, nor to become more diversified, nor to make the most or best of anything, nor to provide jobs, have the most modern plants, the happiest customers, lead in new product development, or to achieve any other status which has no relation to the economic use of capital. Any or all of these may be, from time to time, a means to our objective, but means and ends must never be confused. We are in business solely to improve the inherent value of the common stockholders‟ equity in the company.” Read more: /blog/2009/09/theobjecitve-of-a-company/#ixzz0S7amKca6

Financing Decisions i) Capital Structure ii) Project Selection
Investment
Decisions (very important) ii) Leasing ii) Working capital iii) Dividends (Distribution)iv) Mergers


Arnold cites Cadbury Schweppes Other objectives, strategy?
Contractual
theory of the firm Is shareholder wealth max really a realistic assumption Actual and implicit What is shareholder wealth Difference between profit and wealth maximisation



The allocation of scarce resources over time under conditions of uncertainty. Investment -direct investment portfolio investment Corporate finance Multi currency finance
cash
finished goods stock debtors
taxation
fixed assets
SHAREHOLDusiness Finance For Decision Makers, McLaney
Firms
act via their managements Management objectives may not coincide with shareholder objectives. Example i) Job enhancement ii) Prestige iii) Job survival ‘Rational managers take rational decisions to maximise shareholder wealth’ - the theory ‘Rational managers take rational decisions to maximise managerial wealth’ - human nature
Responsible for finance Raising money Equity finance Loans Long term capital, short term capital and medium term capital


Controlling the firm Accounting Budgets Planning Capital projects & new business usually controller
MANAGERIAL FINANCE LECTURE 1 INTRODUCTION TO THE FIRM
In
capitalist economies: Shareholders combine together to maximise shareholder wealth. Firms maximise shareholder wealth by maximising the current value of the firm Current value is maximised by firms making investment decisions which generate net positive values. Namely: Matching the resources of the firm to the needs and wants of the market place
The Main Ideas: Efficient Market Hypothesis (E.M.H.) Capital markets are efficient in allocating prices and hence resources to financial securities Capital Asset Pricing Model (C.A.P.M.) Capital markets adjust the price of financial securities to allow for risk Returns Rational investors accept higher risk but only for higher anticipated returns N.P.V. Enables future cash flows to be valued Agency theory Agents do not always act in the interest of the principal.
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