FIN 300 Chapter : FIN300 ch 1

• School: Ryerson University
• Department: Finance
• Course: FIN 300
• Professor: Cynthia Holmes

Document Summary

Managerial finance essentially addresses questions made by investors and firms (order): The top financial manager within a firm is usually the chief financial officer (cfo) y treasurer oversees cash management, capital expenditures and financial planning y controller oversees taxes, cost accounting, financial accounting and data processing. Decision #1: capital budgeting y y long-term investments or projects the business should take on. Invest in a new computer system? y need to take into account the timing of the costs and the benefits. y need to evaluate the likelihood that the benefits will be received. Three major forms of business in canada y sole proprietorship y partnership y corporation. One additional, less common form is the income trust. Maximize the current value per share of existing stock. Financial management decisions are made in the context of achieving this goal. Indirect agency cost is the value of what is lost due to missed opportunity.