Management and Organizational Studies 1023A/B Lecture Notes - September 11 Attacks, Western Standard, Ethical Movement

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

The science or study of the management of funds. Management serves as an arbitrator and moderator between conflicting interest groups or stakeholders and objectives. Creditors, managers, employees and customers hold contractual claims against the firm"s revenues. Shareholders have residual claims against the company. Six principles of finance: time value of money. The objective of financial management is to maximize shareholder. Money in hand today is worth more than the promise of receiving the same amount of money in the future. Time value of money exists because a sum of money today could be invested and grow over time. An investment can be viewed in two ways its future value or its present value. Assume a bank pays 8% interest on a deposit made today. If a bond will pay in two years, what is the present value of the if. We have discounted the to its present value of . 72.