(BQ) Part 1 book "Principles of managerial finance" has contents: Introduction to managerial finance, financial statements and analysis; cash flow and financial planning, time value of money, risk and return, interest rates and bond valuation. | PA R T 1 INTRODUCTION TO MANAGERIAL FINANCE CHAPTERS IN THIS PART 1 The Role and Environment of Managerial Finance 2 Financial Statements and Analysis 3 Cash Flow and Financial Planning Integrative Case I: Track Software, Inc. 1 CHAPTER 1 THE ROLE AND ENVIRONMENT OF MANAGERIAL FINANCE L E A R N I N G LG1 LG2 LG3 Define finance, the major areas of finance and the career opportunities available in this field, and the legal forms of business organization. Describe the managerial finance function and its relationship to economics and accounting. Identify the primary activities of the financial manager within the firm. LG4 LG5 LG6 G O A L S Explain why wealth maximization, rather than profit maximization, is the firm’s goal and how the agency issue is related to it. Understand the relationship between financial institutions and markets, and the role and operations of the money and capital markets. Discuss the fundamentals of business taxation of ordinary income and capital gains, and explain the treatment of tax losses. Across the Disciplines WHY THIS CHAPTER MATTERS TO YO U Accounting: You need to understand the relationships between the firm’s accounting and finance functions; how the financial statements you prepare will be used for making investment and financing decisions; ethical behavior by those responsible for a firm’s funds; what agency costs are and why the firm must bear them; and how to calculate the tax effects of proposed transactions. Information systems: You need to understand the organization of the firm; why finance personnel require both historical and projected data to support investment and financing decisions; and what data are necessary for determining the firm’s tax liability. Management: You need to understand the legal forms of business organization; the tasks that will be performed by finance 2 personnel; the goal of the firm; the issue of management compensation; the role of ethics in the firm; the agency .
