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

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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

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A medical solution to coronavirus will form a bottom to the market: Allianz advisor El-Erian

The coronavirus pandemic is affecting the economy and stock market, which turned down strongly in response to the virus crisis.  The Dow Jones Industrial Index (DJIA) fell 29 percent from its February 2020 highs.  Mohammed El-Erian, Allianz Chief Economic Advisor, says that medical issues are improving with fewer people getting infected and dying.  This bright spot needs further medical improvement to continue the stock market recovery.  Run Time: 7:42

Source: Viacheslav Lopatin/Shutterstock.

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What Will Finance Look Like After Coronavirus?

Professor Beck discusses the business and economic effects of the Coronavirus pandemic. Businesses will hold back on investment and hoard cash.  Some sectors (e.g., digital related) will do well and others struggle. Run Time: 7:42

Source: Viacheslav Lopatin/Shutterstock.