Week 14 Slides Flashcards
What is finance
Planning, obtaining, and managing the company’s funds to use to reach goals
What do financial managers do
Make and carry out plans to use the money
What are assets
What a firm owns
Use of funds
What are short term assets
Cash
Marketable securities
Accounts receivable
Inventory
What is debt captial
Funds made through borrowing
What is equity capital
Funds provided by firms owner
What are short term funds
Current liabilities
Less expensive
What are long term funds
Long-term debt/equity
Used for long term assets
What are dividends
Periodic cash payments to shareholders
What are 3 short term funding options
Trade credit
Short term loans
Commercial paper
What are 3 long term funding options
Public sale of shares and bonds
Private placements
Venture capitalists
