a. Corporate finance is important to all managers because it helps them learn and use strategies and projects that add worth to their firm. It also helps forecast keep requirements and formulate strategies for obtaining those funds.
b.Organizational forms of trading
a.Sole proprietorship or Partnership
i.Advantages- sculptural relief of formation. Subject to few regulations. No corporate income taxes.
ii.Disadvantages- Limited life. interminable liability. Difficult to raise capital.
b.Corporation:
i.Advantages- Unlimited life. Easy polish off of ownership. Limited liability. Ease of raising capital.
ii.Disadvantages- Double taxation. Cost of set-up and melodic theme filing
c.Going public
d.A managers primary intention should be to maximize shareholder wealth which also message maximizing assembly line prices.
a.Firms do have a obligation to edict because shareholders are members of the society so taking mission of society in glide by takes care of your shareholders.
b.Maximizing production line price is good for society because firms who try to maximize stock prices usually hire more employees which give the people of society working jobs.
c.All firms should behave ethically. Firms, employees and consumers.
No one likes doing business with companies that dont treat employees or consumers ethically.
e.Three factors that correspond cash flows are sales revenue, operating expenses and necessary investments in operating capital.
f. bare cash flows represent the cash that a company is able to produce after laying by the money required to maintain or grow its asset base.
g.Weighted average cost of capital is the average return required by all of the firms investors.
h.Free cash flows and weighted average cost of capital interact to determine a firms value by looking at the amount of cash compulsory to grow and amount needed to be paid out by investors.
i.Providers (savers) and users (borrowers).
a.Savers- Households
b.Users/ Borrowers-...If you want to rise a full essay, order it on our website: Orderessay
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