BADM*3000 Lecture Notes - Lecture 1: Corporate Finance, Capital Structure, Capital Budgeting
Document Summary
Chapter 1: goals and governance of the firm. Pursue interesting and rewarding career opportunities--well paid in. The study of how individuals and corporations allocate scarce resources. Finance deals with both investment decisions and financial decisions. Decide which assets to buy and how to finance them. What capital investment projects to invest in--that is, capital budgeting o. How to pay for those assets--that is, financing decision. To raise money for the investments, the financial manager can. The choice between these two external sources is the capital structure decision. Capital structure capital market determines the capital structure of the firm. The selection and mix of long-term debt and equity securities sold in the. Financial assets--securities (bonds and stocks) issued to raise money to. Real assets--assets used to produce goods and services such as machinery, factories, offices and knowledge finance investments in real assets; they are claims to the income generated by real assets investments in real assets (physical capital)
