Professional Documents
Culture Documents
Business in a
Changing World
Chapter 16
Financial Management and Securities
Markets
2
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
16-3
Sears Holding Corporation –
Using brand names to create
bonds
16-4
Current Assets and Current Liabilities
• Current assets -- short-term resources
– Cash
– Investments
– Accounts receivable
– Inventory
16-5
Current Assets
16-6
Managing Cash
16-7
Managing Cash
16-8
Going Green or Greenwashing?
16-9
Managing Cash
16-11
Managing Cash
Type of Maturity Seller of Security Interest Rate Safety Level
Security 5/23/08
Commercial Major
30 days 2.19% Very Good
Paper Corporations
U.S. commercial
CDs 90 days 2.62% Very Good
banks
U.S. commercial
CDs 180 days 2.80% Very Good
banks
European
Eurodollars 90 days 2.75% Very Good
commercial banks
16-13
Accounts Receivable
16-14
Optimizing Inventory
16-15
Maximizing Current Liabilities
16-16
Bank Loans
• Factoring organization
– Purchases accounts receivable at a discount
16-19
Managing Fixed Assets
16-20
Budgeting & Planning
Frequently
Occasionally
Rarely
16-22
Highest Risk
Lowest Risk
16-24
Financing with Long-Term Liabilities
16-25
Bonds
16-26
A Basic Bond Quote
16-27
Types of Bonds
16-28
Types of Bonds
16-30
Financing With Owners’ Equity
16-31
Investment Banking
16-33
Measuring Market Performance
• Indexes
• Averages
• Bull market
• Bear market
16-34