FIN20150 Lecture Notes - Lecture 1: Financial Statement, Profit Maximization, Accounts Receivable
Document Summary
Financial management - what assets should the firm invest in and how should. Money and capital markets - the study of markets where financial assets are those assets be paid for share of stock worth? exchanged. The fundamental financial management decisions are investment and financing decisions. Capital budgeting- the process of planning and managing a firm"s long term investments o o. Ex) deciding whether to open another store or developing new spreadsheet program. Must evaluate when expect to receive it and how likely they are to receive it. Capital structure- the mixture of debt and equity maintained by a firm how much a firm should borrow/least expensive sources of funds for the firm. Financial manager decides exactly how and were to raise the money o o. Working capital management- ensuring that the firm has sufficient resources to continue its operations and avoid costly interruptions o. Working capital- a firm"s short term assets and liabilities o.
