TOPIC 3

CORPORATE FINANCE

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 READING LIST

English Text Books:

• Ross, Westerfield, and Jaffe, (2012), Corporate Finance, 10th Edition,

McGraw-Hill Education

Vietnamese Textbook

•PGS.TS. Mai Thanh Quế, PGS.TS. Lê Thị Diệu Huyền (2019), Giáo trình tài chính
học, NXB Lao động

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 CONTENTS

1 Overview of corporate finance

2 Assets, liabilities and equity

3 Revenues, expenses, and income

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4 Main areas of corporate finance

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OVERVIEW

What is corporate finance?

Corporate finance is the division

of finance that deals with how
corporations deal with funding
sources, capital structuring,
and investment decisions.

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 OVERVIEW
MODERN FORM OF FIRMS

Sole General Limited Corporation

Proprietorship Partnership Partnership

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 OVERVIEW
SOLE PROPRIETORSHIP

Advantages Disadvantages

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 OVERVIEW
PARTNERSHIP

Advantages Disadvantages

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 OVERVIEW
CORPORATION

Advantages Disadvantages

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 OVERVIEW
THE GOAL OF CORPORATE FINANCE

1 2

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THE BALANCE SHEET MODEL OF THE FIRM

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 THE BALANCE SHEET MODEL OF THE FIRM

Definition:
Total Assets = Total Liabilities + Total Shareholder’s Equity (Utilization of
Fund) = (Sources of Funding)

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ASSETS, LIABLITIES, AND EQUITY
ASSET CLASSIFICATION

Assets

Current assets Fixed assets

What are the difference between

current assets and fixed assets?
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 ASSETS, LIABILITIES AND EQUITY

Distinguish between Liabilities

and Stockholders’ Equity

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REVENUE, EXPENSES, AND INCOME
Definition:

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 Profit and profit distribution

How corporations pay dividends

April 15, 20XX May 11, 20XX May 13, 20XX June 10, 20XX

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 Profit and profit distribution
DIVIDEND POLICY
• The most common type of dividend is in the form of cash. Paying a
cash dividend reduces corporate cash and retained earnings
•

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THE IMPORTANCE OF CASH FLOW

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MAIN AREAS OF CORPORATE FINANCE

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