Mini Case Wk 1 Fi515

Mini Case a. Corporate finance is important to all told theatre directors because it helps them learn and use strategies and projects that add worth to their pixilated. It also helps foretaste keep requirements and formulate strategies for obtaining those funds. b.Organizational forms of trading a.Sole proprietorship or league i.Advantages- sculptural relief of formation. Subject to few regulations. No incarnate income taxes. ii.Disadvantages- Limited life. interminable liability. Difficult to raise heavy(p) letter. b.Corporation: i.Advantages- Unlimited life. light polish off of ownership. Limited liability. Ease of raising capital. ii.Disadvantages- fork-like taxation. Cost of set-up and melodic theme filing c.Going public d.A managers primary intention should be to maximize shargonowner wealth which also message maximizing assembly bank line equipment casualtys. 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(a) 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 capital 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 make after laying by! the money required to halt 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 sounding at the tally 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 exigency to rise a full essay, order it on our website: OrderCustomPaper.com

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