Ba 323 sdsu - Study guides, Class notes & Summaries

What is the main goal of the corporation? - To make capital gains for shareholders. Maximize value of the firm. Who ultimately owns the corporation? What is the relationship between shareholders, the board of directors, and management? - Shareholders ultimately own the corporation. Management (managers) are naturally inclined to act in their own interests but that may not be in the best interests of shareholders. The board of directors - elected by the shareholders - can oversee managerial...

time value of money - Adjusting the value of cash flows based on when the cash flows are received. Future Value - the amount of money in the future that an amount of money today will yield, given prevailing interest rates Present Value - The value today of a future cash flow or series of cash flows Compounding - The arithmetic process of determining the final value of a cash flow or series of cash flows when compound interest is applied Know how to solve for the future value, present valu...

What is the main goal of the corporation? - ️️To make capital gains for shareholders. Maximize value of the firm. Who ultimately owns the corporation? What is the relationship between shareholders, the board of directors, and management? - ️️Shareholders ultimately own the corporation. Management (managers) are naturally inclined to act in their own interests but that may not be in the best interests of shareholders. The board of directors - elected by the shareholders - can oversee ...