BMGT 340 Lecture Notes - Lecture 2: Shake Shack, Double Taxation, Initial Public Offering

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 340
• Professor: Michael Padhi

Document Summary

Chapter 1: corporate finance and the financial manager in-class notes: four types of business, sole proprietorship. It is a lot cheaper and less complicated to set up a sole proprietorship indicating why the number of them is so high. Has limited life (king charles ii is an example: partnership, llc, corporations. Earnings are taxed at a corporate, and remainders which are sold as dividends are being taxed at dividends rate (d. 2. a. b) 2 personal tax rates an individual can pay: wage tax, and investment income tax rate. Goal of the financial manager: according to a survey of ceos: The company can get really large but is losing money. Maximizing aggregate dollars earnings (ni: according to the textbook: Its measurable (you can see the market price) Everyone can agree on it being that every shareholder has different opinions on what the firm should be doing. Also agreeable because it incentivizes to make more money.