FINE 2000- Final Exam Guide - Comprehensive Notes for the exam ( 24 pages long!)
Document Summary
Will you bring in other owners or will you borrow the money? (capital structure: how will you manage your everyday financial activities such as collecting from customers and paying suppliers? (capital management) Corporation employs managers to represent the owners" interests and make decisions on their behalf. In a large corporation, the financial manager would be in charge of answering the three questions we raised in the preceding section. Controller"s office handles cost and financial accounting, tax payments, and management information systems. The treasurer"s office is responsible for managing the firm"s cash and credit, its financial planning, and its capital expenditures. These treasury activities are all related to the three general questions raised earlier. (we will focus on the treasurer) Evaluating the size, timing, and risk of future cash flows is the essence of capital budgeting. As long as we are dealing with for-profit businesses, only a slight modification is needed.
