Management and Organizational Studies 2310A/B Chapter Notes - Chapter 1: Double Taxation, Amortization Schedule, Cash Flow

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Danny L Morrison

Document Summary

Chapter 1 an overview of financial management and the financial. Environment: forms of business organizations, proprietorship, partnership, corporation (conduct more business than other forms) Maximizing stock price maximizing shareholder"s wealth: goal. Fcf are cash flows available for distribution to all investors. Fcf = sales revenues operating costs operating taxes required investments in operating capital. Wacc: weighted average cost of capital: transfers of capital between borrowers and savers take place, by direct transfers, by transfers through investment banks, by transfers though financial intermediaries. ***factors that affect the cost of money: production opportunities, time preferences for consumption, risk, inflation. Money markets: the markets for debt securities with maturities of less than 1 year. Capital markets: markets for long-term debt and corporate stocks. Primary markets: the markets in which corporations raise new capital. Secondary markets: markets in which existing, already outstanding securities are traded among investors. Fixed-income market: debt securities (ex: bond or any kind of loan).