Management and Organizational Studies 1023A/B Study Guide - Final Guide: Dividend, Cash Flow, Capital Budgeting

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

Document Summary

Mos 1023 final exam notes: finance > the science or study of management of funds. > to create value for the firm"s shareholders. They do this by maximizing the price of the existing common stock. Good financial decisions will help increase stock price and poor financial decisions will lead to a decline in stock price. Share price (buy share at , sell at ) 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 company contractual claim = claim to money through a contract (i. e. employee wage invoice) Shareholders have residual claims against the company residual claim = claims to interest on their investment in company. manager = intermediary stakeholder > any person who needs a business to do well (have a stake in the business). Three basic issues addressed by the study of finance.