FIN 300 Lecture Notes - European Cooperation In Science And Technology, Sole Proprietorship, Stock Market
Document Summary
Investors have impact: following the crowd, overconfident or over reaction. Bought 50% and war broke out = hate (4) ex- anti vs. ex. post (forecasting vs real situation) (3) time value of money. All past information only. All past + publicly available info (ie. announcements) Up till 9:45am, stock price; announced dividend , 10:00 = : strong (rare; basically not possible!) Same stock should be in. Profit - > a. retain or b. dividends. Ca and cl, dividend decision. Mix affects risk and value of firm: least costly way to fund. If so, terms and customers: getting st financing . What does the financial manager do? (1) cash raised from investors (2) cash invested in firm (3) cash generated by operations (4) a. Cash re- invested: cash returned to investors. Hard to raise financing. Hard transfer of ownership. Life limited to owner. Increase human and financial capital. Owner keeps all profits. Limited partners have limited liability.
