Business Administration 4439A/B Lecture Notes - Lecture 1: Cash Flow
11 Apr 2016
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Learning objecives: the case will be used to discuss the concept of value. The perspecive of both the supplier of capital and the borrower will be invesigated. Assignment: in preparaion for the class you may review your knowledge of: Common share holders have voing rights in terms of elecing a board of directors. Do not have to pay dividends: disadvantages: Maintain control over the company through voing rights. Real owners of a company yet limited liability. High liquidity and can be sold to other investors: disadvantages: Form of equity investment in a company; hybrid between stocks and bonds. Preferred share holders do not have voing rights but get paid dividends ixed sums of cash that get paid periodically depending on how much proit the company makes. Do not have to give over management control over the company: disadvantages: Higher ixed income payments than bonds or stocks. More stable/less volaile compared to common stocks or bonds: disadvantages:
