INTRODUCTION TO BUSINESS, Third Edition 
Gaspar/Bierman/Kolari/Hise/Smith/Arreola-Risa

Video Labs: Chapter #13-Financial Management of the Firm and Investment Management

An Introduction to Financial Management

 

This video discusses the importance of financial management, which concerns the acquisition and investment of funds within a company.  Finance is the study of how to make good decisions that involve money.  Risk and return are key concepts.  Analysis and decision making are two functions of finance.  Finance includes corporate finance, personal finance, investments and portfolio management, financial markets and institutions, and public finance.  The video gives an example focusing on the food business. Financial management is defined, including acquisition of funds (i.e., borrowing and equity) and allocation of funds (i.e., investment in working capital, fixed assets, and paying dividends to shareholders). The goal is to increase the value of the firm or shareholder value of equity through wealth (not profit) maximization that takes into account risk. Run Time: 27:03

Present Value 4 and Discounted Cash Flow

 

This video gives some examples using interest, future value, and present value calculations.  Students can learn discounted cash flow concepts.  These concepts can be used to value (for example) a firm.  The discount rate used in the analyses is a critical variable.  Are the cash flows riskless or risky?  This difference can affect the discount rate – either a riskless or risky discount rate. Run Time: 10:02

Financial Calculator Ch 13.jpg
Present Value 4 and Discounted Cash Flow

 

This video gives some examples using interest, future value, and present value calculations. Students can learn time value of money concepts.  The discount rate used in the analyses is a critical variable.  In this video it is assumed that the interest rate (or discount rate) equals a risk-free 10 percent.  These concepts can be used to value (for example) an investment or a firm. Run Time: 8:16