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Chapter One Class notes Intro to Finance. What is Finance?. What are the tasks of the financial manager ?. From Harvard Business.org video. http://www.youtube.com/watch?feature=player_detailpage&v=aJsmJsd6GIw What is the difference between Accounting and finance?
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What is Finance? What are the tasks of the financial manager?
From Harvard Business.org video • http://www.youtube.com/watch?feature=player_detailpage&v=aJsmJsd6GIw • What is the difference between Accounting and finance? • What is meant by “keeping score”? • Universal score points. What is meant by this? • What is meant by transparent?
Global Business • What has this shift done to you and your business? • Who is the “ordinary business person”?
Forms of Business • http://www.youtube.com/watch?feature=player_detailpage&v=pPVkG9krOMI • Where do people go to get money for a new business?
Forms of Business • What characteristics are the primary drivers of choice of the type of business organization?
Goals • What is a benchmark? • How would you describe the following: • Maximize profit • Minimize expenses • Maximize market share • Maximize shareholder wealth
Ethics • What is ethics? • Warren Buffet once said (paraphrased) that in deciding on acting ask yourself: If this was in the newspaper tomorrow (and your mother was reading the article); How would you feel?
Ethics • Who are the stakeholders of a business? • Are competitors stakeholders?
Agency • What is it? • Why does it exist? Does it exist? • What does it do? • How can we try to stop it? • What is a hostile takeover?
The Business man!!! • http://www.youtube.com/watch?feature=player_detailpage&v=8SHt44I9S6k
BUA321 Ch01 Research 45 points • Go to http://finance.yahoo.com • Step 1 • Pick a company to explore. • Enter the company name next to the ticker symbol
Input the company’s name?___________ Ticker symbol? ____________ • Go to summary What is the most recent dividend? _______
Go to profile 1) CEO? _______________ Age? ______ 2) How many employees? ____________ 3) What industry and sector is the company in? Industry ________________ Sector _________________
Click on the Sector • Components of the sector (list the 4 largest components of the sector sorted by market cap) • 1) • 2) • 3) • 4)
Go back to profile page; click on industry • Click on Industry Leaders and laggards • In the table below list the names of the top 3 leaders and the bottom 3 laggards for the industry for each variable below include the number listed for that company • a) price performance intraday • b) free cash flow growth • c) market capitalization • d) PE ratio
Enter company namesand the value in the blocks. • Leaders • Laggards
Analysis • What companies seem to show up frequently? From observation who is the best and the worst? • Where is your company?
What is a stock Index? • What is the company’s index membership?
Copy and paste the financial statements into this document. • Highlight the statement, right click to copy. • Paste special into the word document.
Pearson • Chapter 01 Quiz (42pts) • Chapter 01 Online HW (14pts) Offline • Chapter 01 Web (50pts)