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Corporate Finance Vocab
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Most Common Goal for Financial Managers
Maximizing the present value of the expected future returns
Total Shareholder Wealth=
Number of Shares*Market Price/Share
Present Value
The value today of all future returns evaluated at a discount rate
Discount Rate
factors returns from other investments during a specific (future time period)
Stockholders and Creditors (Agency Problem)
Creditors (Bond holders) have a fixed financial claim on company resources (long run debt)
Disadvantages of Incorporation
Separation of ownership and management
Pay taxes at corporate level and on any dividends
Author:
Anonymous
ID:
167120
Card Set:
Corporate Finance Vocab
Updated:
2012-08-23 14:05:34
Tags:
Corporate Finance vocab
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Description:
Corporate Finance
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