FINANCE FOR

MANAGERS

2021
PhD. Son Duong Tran - School of Management
M5. FINANCIAL
MARKETS AND
FINANCING

2021
PhD. Son Duong Tran - School of Management
 M5.1:
SHORT- AND LONG-
TERM FINANCING

2021
PhD. Son Duong Tran - School of Management
The big picture

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Learning Objectives
After studying this module you should be able to:

1. Briefly describe the main forms and sources of shortterm borrowing

2. Discuss the issues involved with the choice of alternative short-term financing
policies

3. Describe the main characteristics of corporate debt, preference shares and

ordinary shares

4. Explain the purpose and mechanics of an interest rate swap.

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Learning Objectives
After studying this module you should be able to:

5. Describe the issuance of equity in the primary market, the advantages and
disadvantages of a public listing, and the purpose of the underwriter

6. Describe the issuance of equity via a rights issue and calculate value of a right

7. Determine the effect of new issues on existing shareholders.

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The Financial System

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Financial Markets

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Financing Policy for an ‘Ideal’ Economy

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Optimal Amount of Short-term Borrowing

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Alternative Asset Financing Policies

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A Compromise Financing Policy

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Short-term Financing

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 M5.2:
LONG-TERM FINANCING:
AN INTRODUCTION

2021
PhD. Son Duong Tran - School of Management
What is Debt?

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Debt vs Equity

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Financial Distress

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Ordinary Shares

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 M5.3:
ISSUING SECURITIES TO
THE PUBLIC

2021
PhD. Son Duong Tran - School of Management
New Issues

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Disadvantages of Public Company Listing

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Secondary Issues

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Underwriting

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The Cost of Issuing Securities

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The Cost of Issuing Securities

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The Cost of Issuing Securities

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The Cost of Issuing Securities

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The Cost of Issuing Securities

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The Cost of Issuing Securities

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The Cost of Issuing Securities

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The Cost of Issuing Securities

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The Cost of Issuing Securities

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The Cost of Issuing Securities

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 Q&A
THANK YOU
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