MGMT 3320 Chapter Notes - Chapter 1: Prime Rate, Disinflation, Double Taxation
23 Mar 2016
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Chapter 1: the goals and functions of financial. Finance is about making decisions that focus on creating value within the firm by: raising capital efficiently (debt from creditors and equity from shareholders, investing in value-creating assets (current and capital) Finance has evolved from a pure descriptive discipline through an analytical, decision-oriented discipline to now a discipline used by finance managers. Learning objective 2: evolution of finance as a discipline. How much trade credit the firm should provide or use? (working capital management decision) These decisions are made within a risk-return framework. By the 1950"s focus was on the allocation of financial capital (money) for the purpose of real capital (plant and equipment) and the creation of value from the interplay of possible returns and risks. Capital budgeting analysis objectively evaluated long-run decisions to allocate the firms scarce resources. (cid:1) (cid:1) (cid:1)
