AFF 210 Lecture Notes - Lecture 1: Cash Flow, Dividend Policy, Share Repurchase
Document Summary
Make money foe the stakeholders. (investors, stockholder, lenders, employees, etc) The people"s welfare/ wealth. (suppliers, customers, communities, employees) In finance, the goal of management is to maximize common shareholder value. Capital budging decision excel can help with this decision. Today, instead of dividends, there is something called share repurchase. A dollar today is worth more than a dollar tomorrow . If the return is very high, then the risk is very high. (scam) A company"s net income or sales are not as important as cash flow. Estimate or forecast future cash flows (in finance, we call it expected cashflow) Past cash flow does not equal to future cash flow. Retail investors: any individuals. (usually with less education, experience knowledge, money) Institutional investors: insurance company, bank, d. t. pp. (usually with higher education and more experience, and more knowledge and money, ) Price of td bank 73. 32 value of td bank 100 or 50.