GBDA 102 Lecture Notes - Lecture 5: Angel Investor, Corporate Finance, Cash Flow

62 views3 pages
Class 5
Midterm
Multiple choice and short answers
oShort answers is 1-3 sentences on understanding
1.5 hour (starts at 2:00)
from 1st class to todays class
unless we didn’t have time to look over the slide in class, everything in class will be
covered on the exam
Notes – International Financial Markets and Foreign Exchange
read pg 262-268
read the PDF on learn for financial stuff
Basics of corporate finance
oCan have employees or shareholders
oOutside board members could sit inside the board of directors that isn’t in the
industry, but offers insight
oBoard of directors make the decisions, exec officer implements them
oMainly focus on the CFO branch
Two direct branches; controller (accounts receivable, getting money on
time, etc.), and treasurer (managing the money side of the company, how
can they get money, eg. what is the best way to build a factory, and
where would we get the money for that from?)
Responsibility
Make investment decisions (build a new factory or not, or what to
do with excess cash, purchase other stocks?)
Make financing decisions (do I invest money?)
Manage cash flow for operating activities (important, some
companies may say they have profit but not collect the money in
time)
Financing decisions (balance sheet = assets vs. liabilities and
equity)
oCorporate financing
Stocks
Preferred stocks – there is no say on the major decisions of the
company, only get a dividend, if the company goes bankrupt
preferred stocks get to claim the asset sooner than common stock
owners
Common stocks – shares entitling their holder to dividends that
vary in amount (and may even be missed), depending on the
fortunes of the company
A private company can seek funding for equity from:
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class