世纪商务英语阅读教程专业篇II.ppt

世纪商务英语阅读教程（专业篇 II) ? Unit 2 Lead-in Financial management concerns three major decisions of how to maximize a firms value, and the three major decisions are closely related. While insurance concerns various ways about how to protect an individual or an organization from possible economic losses, and the different types of insurance benefit not only the insured but also the society. After studying this unit, you will be able to: ◇ Understand the function of financial management. ◇ Explain how insurance plays an important role in modern life. ◇ Discuss different types of insurance and their coverage. Text A Financial Management 1. Three Major Decisions 2. Interrelations Between the Three Major Decisions 3. Financial Management Three Major Decisions ? Financial management involves the solution of three major decisions. Financial Management The investment decision 投资决策 The financing decision 融资决策 The dividend decision 分配决策 Financial Management ◇ The investment decision is the most important one. ◇ The investment can create value for a company. ◇ The investment involves risks. ◇ The appropriate required rate of return should be determined for the investment. ◇ A financial manager is responsible for existing assets, especially , current assets. The Investment Decision The Financing Decision Financial Management ◇ The financing decision is the second major decision. ◇ The financing decision concerns the best financing mix or capital structure. ◇ An optimal financing mix can maximize the market value of an companys stocks. Financial Management The Dividend Decision ◇ The dividend decision is the third important decision. ◇ The dividend decision includes the percentage of earnings for cash dividends. ◇ The dividend-payout ratio determines the amount of earnings retained in the firm. Interrelations Between the Three Major Decisions ☆ Investment needs financing funds. ☆ Financing funds needs retaining part of incomes for dividends. ☆ Reduced dividends