[FIN 300] - Midterm Exam Guide - Everything you need to know! (24 pages long)
Document Summary
No matter what type you of business you started, you would have to answer the following three questions. *corporate nance, broadly speaking, is the study of ways to answer these three questions. Managers represent the owners interests and make decisions on their behalf. The nancial manager is in charge of inserting the three questions we raised earlier. Capital budgeting: the process of planning and managing a rms investment. The financial manger tries to identify investment opportunities that are worth more to the rm than they will cost to acquire. Evaluating the size, timing, and risk of future cash ows is the essence of capital budgeting. Capital structure (financial structure): the mix of debt and equity maintained by a rm. Financial manager has to decide exactly how and where to raise the money. So choosing among lenders and among loan types is another of the jobs handled by the nancial manager.
