MGM101H5 Lecture Notes - Lecture 5: Legal Drama, Market Rate, Employee Benefits

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Anthony Mayadunne

Document Summary

What capital investment projects to invest in (investment/capital budgeting decision) How to pay for those assets (financing decision) Create value is the most important part in company making. Always ask the question of what value was created. Should we spend money on x or not. Timing is important the shorter the time, the more valuable it is External financing: government support, scholarships, employee benefit, equity from investors, debts, loans. Merchant antonio borrows money from moneylender shylock. Shylock presses charges to extract the pound of flesh. Courtroom drama, love story, family conflicts, racism, and some great speeches! Is a loan which pays interest at specified intervals, and the principal at the end of the loan. Promise to pay back the money along with the interest. The higher the interest rate the better it is for the person giving out the loan.