AFM373 Study Guide - Comprehensive Final Exam Guide - Net Present Value, Capital Structure, Weighted Average Cost Of Capital
20 Nov 2018
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The actual business to create value (investment) Finance - where to get the money to finance investments. Looking at the pvs of projects (series of cash flows) and working out if they add value. o. This is the left hand side (investment decisions) Risk free rate + beta* (market risk - risk free rate) rwacc is used as the discount rate for projects. Smaller the rwacc, the better it is because you get higher npv. He is an non-executive director: role is to help advise the company and represent the interest of other shareholders (the public shareholders, not ben & jerry) Accept a, b, c, d, & reject all 4. Because they"ve been underperforming when the people trying to take over can make more of this company if they take over it. The cofounders of b&j owns most of class b which is 10 for 1 shares. They keeping control on the inside while still selling shares to the outsiders.
