[FIN 20150] - Final Exam Guide - Comprehensive Notes for the exam (24 pages long!)
Document Summary
Corporate finance: the study of the ways to answer these three questions: 1. What long term investments should you take on: 2. Where will you get the long term financing to pay for your investment: 3. In a corporation, stockholders are not involved in making decisions instead, corporation hire managers to do this. Capital structure: the specific mixture of long term debt and equity the firm uses to finance its operations financing for long term investments financial manager must decide how and where to raise the money. Working capital: refers to a firm"s short term assets, such as inventory, and its short-term liabilities, such as money owed to suppliers ensures that a firm has sufficient resources to continue its operations and avoid costly interruptions. Goal of financial management= make money or add value for the owners goal is not to maximize profit but to maximize.
