[FIN 300] - Midterm Exam Guide - Ultimate 20 pages long Study Guide!
Document Summary
Goal of the ceo of a public company. 3 decisions manager makes to achieve goal of maximizing shareholder value. 3. dividends (profs third decision, use dividend for the midterm) Short-term nancial management operating nwc (textbooks third decision, use this for the test. Market value of the assets (v) equals the present value of the expected (future) cash. Ow from the assets (cfa) from year 1 to in nity. Market value of the debt (d) equals present value of the expected (future forecasted) cash ow to bondholders (cfb) from year 1 to in nity. Market value of equity (e) equal to the present value of the expected cash ow to shareholders (cfs) from year 1 to in nity. Mv of assets = mv of debt + mv of equity. Cash flow from assets (cfa) = operating cash flow (ocf) investments in addition to operating nwc capital spending. Cfa = 3020 500 capital spending. Cfb = interrest + principle repaid - new loans.
