FIN 435 Lecture Notes - Lecture 1: Financial Statement, Cash Flow

• School: Old Dominion University
• Department: Finance
• Course: FIN 435
• Professor: Bruce Seifert

Document Summary

Chapter 1 & 4: current multinational challenges and the global economy; What is the goal if the firm in different countries. This course concentrates on the financial operations of all firms. More emphasis is placed on multinational firms (firms with operating units in more than one country) than small domestic firms. Multinationals include both manufacturing as well as service firms. Goal- maximize shareholder wealth: maximize capital gains and dividends for a given level of risk, a (cid:272)o(cid:373)pa(cid:374)y"s sto(cid:272)k pri(cid:272)e is (cid:448)ery i(cid:373)porta(cid:374)t (i(cid:374)(cid:272)orporates all rele(cid:448)a(cid:374)t information) This goal applies in the anglo-american world [ u. s. , u. k. , canada, australia and new zealand] Goal in continental europe and japan- stakeholder capitalism model. Maximize corporate wealth (not only stockholder wealth but also wealth of managers, labor, local community, suppliers and creditors). Wealth not just fi(cid:374)a(cid:374)(cid:272)ial (cid:449)ealth (cid:271)ut also the fir(cid:373)"s te(cid:272)h(cid:374)i(cid:272)al, (cid:373)arket a(cid:374)d human resources. There are different goals in different countries.