Chapter 1 - Value - Goals and Governance of the Firm Corporations invest in real assets -generate cash inflows and income -tangible - machinery, buildings -intangible - brand names, patents Financial manager faces two questions -what investments should the corporation make - involves spending money -how should it pay for those investments - involves raising money Secret of success is to increase value of the corporation and stock price -how to do it? -how well all managers and employees work to increase value -identify risks and make sure they are managed properly Corporation can -invest in new assets -or give cash back to shareholders Opportunity cost of capital that shareholder contribute -can the corporation add value and earn a higher return than shareholders can earn for themselves Reoccurring themes -Maximizing value -Opportunity cost of capital -Crucial importance of incentives and governance Financial asses or securities -corporation sells claims on
Homework and notes for my classes through World University and School in reverse chronological order: Introduction to Lean Six Sigma Methods * Technology Based Business Transformation * Society, Information Technology, and the Global University * Energy Decisions, Markets, and Policies