FIN 401 Lecture Notes - Lecture 2: Net Present Value, Kea (Island), Stock Split
8 Jan 2018
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Indirect< positive npv projects that management doesn"t undertake for selfish reasons. Board of directors: independent from the ceo, responsible for hiring managers/implementing company strategy. Key committees: ideally composed entirely of independent directors. Audit committee: auditors to be rotated every 5 years executive stock. Options: gives executives the options to buy shares of the company"s stock at a specified price. Ceos in north america make 2<3 times as much as in. Europe/japan, 200x amount of average worker the common. Good: not clear that amount and type of executive compensation is good for society at large, regardless of whether it"s good for shareholders. Fairness: pay should be according to the relative contribution made to the firm and society while also considering the risks taken declaration. Date: b. o. d passes a resolution to pay a dividend. Date of record: date on which holders of record are to receive a div. Date: 2 business days before a date of record, stock bought.
