This PPT slide, part of the 42-slide Finance and Valuation Basics PowerPoint presentation, illustrates how companies secure funding through capital markets by issuing debt and equity instruments. It visually represents the flow of funds between a company and its financial backers, specifically banks and bondholders. The central figure, labeled "Company," highlights its role in the financial ecosystem, engaging in various activities such as buying and selling fixed assets, purchasing raw materials, and manufacturing products.
The interactions are depicted with arrows indicating the movement of money and resources. For instance, the company collects cash from customers, which is essential for its operations. It also pays employees and suppliers, showcasing the operational expenditures that arise from its activities.
On the left side, the slide emphasizes the relationship between the company and bondholders. It notes that bondholders provide capital in exchange for bond certificates, which obligate the company to pay interest. This reflects the debt financing aspect, where the company incurs liabilities to fund its operations.
On the right side, stockholders are represented, indicating their investment through stock certificates. The company rewards these investors through dividends and potential stock appreciation. This highlights the equity financing side, where ownership stakes are exchanged for capital.
The concluding statement reinforces the expectation that both bondholders and stockholders seek returns on their investments, which are tied to the company's performance. Understanding this dynamic is crucial for potential investors or stakeholders considering their involvement with the company.
This slide is part of the Finance and Valuation Basics PowerPoint presentation.
EXPLORE MORE SLIDES FROM THIS PRESENTATION
EXPLORE MORE PRESENTATIONS ON
Flevy is the world's largest knowledge base of best practices.
Leverage the Experience of Experts.
Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.
Download Immediately and Use.
Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.
Save Time, Effort, and Money.
Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.
