ADMS 3530 Chapter Notes -Discounted Cash Flow, Effective Interest Rate, Real Interest Rate

179 views41 pages

Document Summary

The financial manager identifies projects and decides how much to invest in each project. Ch 1- goals and governance of the firm. The financial manager is to make good investment and financing decisions. Def"n- decision about which real assets the firm should acquire. Some investments are in tangible assets, while some are intangible (trademark, patents) Def"n- how to raise the money to pay for investments. When deciding how to raise money, a company can: invite investors to put up cash in exchange for a share of future profits, promise to pay back the investors" cash along with a fixed rate of interest. Capital structure- the choice between debt and equity financing. The financial manager has to identify risks and make sure they"re managed properly. *fig 1. 1 for how money flows from investors to the firm and back to investors. Real assets- assets used to produce goods and services. Financial assets- claims to the income generated by real assets; aka securities.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions