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CORPORATE FINANCE OVERALL (FINANCIAL DECISION (INVESTMENT DECISIONS…

- - - - REAL ASSETS
      - CASH FLOW
        
        REAL ASSETS
        
        WILL GENERATE
- - - - TANGIBLE ASSETS
        
        NEW STORES
        
        FACILITIES & MACHINES
        
        AND SO ON
      - INTANGIBLE ASSETS
        
        R&D PROJECTS
        
        ADVERTISING & MARKETING
        
        AND SO ON
    - - CORPS PAY ATTENTION
        
        TIMING OF PROJECTS RETURNS
        
        CUMULATIVE AMOUNT OF RETURNS
    - - SMALLER
      - SIMPLER
      - SUCH AS
        
        BUY A TRUCK
        
        BUY A TOOL
        
        BUY COMPUTER SYSTEM
    - - ALREADY IN PLACE
    - - IF PROFITS DECLINE
    - - VALUE
        
        FOR CORP FINANCE
  - - - MEANS
        
        HOW CORPS
        
        RAISE MONEY FROM
        
        DEBT
        
        BY BANKS
        
        BY ISSUING STOCKS
        
        EQUITY
        
        BY ISSUING SHARES
        
        TAKE CASH FLOW
        
        GENERATED BY
        
        1 more item...
    - - MEAN DECIDE
        
        TO PAY DIVIDENDS
        
        TO REINVEST
    - - MEET OBLIGATIONS TO
        
        STOCKHOLDERS
        
        BANKS
        
        BONDHOLDERS
        
        AND SO ON
    - - NOT ADD
        
        MUCH VALUE
      - BUT CAN DESTROY
        
        VALUE
        
        BY BAD DECISIONS
- - - - BUT CANNOT VOTE
  - - - THEY CAN LOSE
        
        THEIR ENTIRE INVESTMENT
        
        IN A CORP
      - BUT NO MORE
      - CANNOT BE HELD
        
        PERSONALLY RESPONSIBLE FOR
        
        CORPS' DEBTS
- - - - AVAILABLE TO INVESTORS
        
        IN FINANCIAL MARKETS
- - - - INVESTORS
      - DEBTORS
      - AND SO ON
    - - EMPLOYEES
      - CUSTOMERS
      - SUPPLIERS
      - AND SO ON
- - - - SO THAT
        
        MANAGERS PAY ATTENTION
        
        TO FIRM'S VALUE
  - - - TO STRICT
        
        MANAGERS' DECISIONS
    - - FOR MANAGERS
    - - TO SUPPORT
      - TO SUPERVISE MANAGERS
    - - BY MANY EXPERTS
    - - TO MAXIMIZE VALUE
        
        IN INDUSTRIES WITH
        
        SLOW GROWTH
        
        EXCESS CAPACITY
      - RESTRUCTURE UNPROFITABLE CORPS