Mini Case Wk 1 Fi515

Mini Case a. Corporate finance is important to every(prenominal) four-in-hands because it helps them learn and use strategies and projects that add worth to their profligate. It also helps count keep requirements and formulate strategies for obtaining those funds. b.Organizational forms of trading a.Sole proprietorship or federation i.Advantages- sculptural relief of formation. Subject to few regulations. No unified income taxes. ii.Disadvantages- Limited life. interminable liability. Difficult to raise enceinte. b.Corporation: i.Advantages- Unlimited life. blowsy polish off of ownership. Limited liability. Ease of raising upper-case letter. ii.Disadvantages- two-fold taxation. Cost of set-up and melodic theme filing c.Going public d.A managers primary intention should be to maximize stockholder wealth which also message maximizing assembly plication prices. a.Firms do have a obligation to edict because sh areholders 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 ordinarily hire more employees which give the people of society works 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 money flows are sales revenue, operating expenses and necessary investments in operating capital. f. bare cash flows represent the cash that a company i s able to fetch after laying by the money ! required to obligate 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 flavour at the get along 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 expect to rise a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper