Fundamentals of Corporate Finance – comprehensive studyFundamentals
guide and exam
of Corporate
review material.pdf
Finance – comprehensive study guide
Fundamentals
and exam review
of Corporate
material.pdf
Finance – comprehensive study guide and exam review material
Fundamentals of Corporate
Finance – comprehensive
study guide and exam review
material
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_
Fundamentals of Corporate Finance – comprehensive studyFundamentals
guide and exam
of Corporate
review material.pdf
Finance – comprehensive study guide
Fundamentals
and exam review
of Corporate
material.pdf
Finance – comprehensive study guide and exam review material
,Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
capex decisions capital expenditure decision:decisions to invest in tangible/intangible assets
capex Capital Expenditure-land,property, equip, long term real assets
free cash flow Cash available once the firm has covered it's capital expenditures
financing decisions concerned with the ways in which firms obtain and manage long term financing
to acquire and support their productive assets(finance or pay for assets)
-the form and amount of financing a firm's investment, how to get $ in the door,
should I issue debt or isssue equity?
real assets Assets used to produce goods and services, not financial
asset future benefit
economic resource
future economic value will produce profit/value in the future
financial asset financial claims to income generated by real assets
-bonds
Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
,Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
corporation A business owned by stockholders who share in its profits but are not personally
responsible for its debts
-organized as a seperate legal identity owned by stockholders
"a nexus of contracts"
A distinct legal entity, owned by shareholders
Organized under 'articles of incorporation'
Limited liability - shareholders not personally responsible for debts of
corporation
May be 'private' or 'public' (latter has shares issued and trading on exchanges)
May be 'closely held,' or widely dispersed shareholders
Shareholders elect a board of directors, who appoint and monitor managers
"Separation of ownership and control" - shareholders defer to board, managers
Managers may quit, or be replaced, and corporation continues
Downside? "Agency costs"
Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
, Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
Berle and Means, The Modern Corporation and Private Property
Two other downsides
Expensive legal/compliance machinery
"Double taxation" - corporate income taxed, and so are dividends and capital
gains for shareholders
llimited liability the owners of a corp are not personally liable for obligations of the corp- but can
still be sued for personal decisions
cfo chief financial officer-leader, the most important
leads financial decisions and execution
oversees offices of treasurer, controller
Oversees whole financial staff
Close contact with CEO, other senior execs
Key external voice for corporation
treasurer responsible for financing, cash management, and relationshp with banks and
other instit. internal/external manage.
Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
guide and exam
of Corporate
review material.pdf
Finance – comprehensive study guide
Fundamentals
and exam review
of Corporate
material.pdf
Finance – comprehensive study guide and exam review material
Fundamentals of Corporate
Finance – comprehensive
study guide and exam review
material
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_
Fundamentals of Corporate Finance – comprehensive studyFundamentals
guide and exam
of Corporate
review material.pdf
Finance – comprehensive study guide
Fundamentals
and exam review
of Corporate
material.pdf
Finance – comprehensive study guide and exam review material
,Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
capex decisions capital expenditure decision:decisions to invest in tangible/intangible assets
capex Capital Expenditure-land,property, equip, long term real assets
free cash flow Cash available once the firm has covered it's capital expenditures
financing decisions concerned with the ways in which firms obtain and manage long term financing
to acquire and support their productive assets(finance or pay for assets)
-the form and amount of financing a firm's investment, how to get $ in the door,
should I issue debt or isssue equity?
real assets Assets used to produce goods and services, not financial
asset future benefit
economic resource
future economic value will produce profit/value in the future
financial asset financial claims to income generated by real assets
-bonds
Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
,Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
corporation A business owned by stockholders who share in its profits but are not personally
responsible for its debts
-organized as a seperate legal identity owned by stockholders
"a nexus of contracts"
A distinct legal entity, owned by shareholders
Organized under 'articles of incorporation'
Limited liability - shareholders not personally responsible for debts of
corporation
May be 'private' or 'public' (latter has shares issued and trading on exchanges)
May be 'closely held,' or widely dispersed shareholders
Shareholders elect a board of directors, who appoint and monitor managers
"Separation of ownership and control" - shareholders defer to board, managers
Managers may quit, or be replaced, and corporation continues
Downside? "Agency costs"
Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
, Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
Berle and Means, The Modern Corporation and Private Property
Two other downsides
Expensive legal/compliance machinery
"Double taxation" - corporate income taxed, and so are dividends and capital
gains for shareholders
llimited liability the owners of a corp are not personally liable for obligations of the corp- but can
still be sued for personal decisions
cfo chief financial officer-leader, the most important
leads financial decisions and execution
oversees offices of treasurer, controller
Oversees whole financial staff
Close contact with CEO, other senior execs
Key external voice for corporation
treasurer responsible for financing, cash management, and relationshp with banks and
other instit. internal/external manage.
Fundamentals of corporate finance.pdf Fundamentals of corporate finance.pdf Fundamentals of corporate finance
