Fn515-Week1Homework

a) Why is corporate finance important to all managers? structured finance is the fundamental on which a comp some(prenominal) is run. only(prenominal) managers should keep in mind when accepting new projects or directing funds in the optimal department or a product in the company. Corporate finance al deplorables managers to mark and select corporate strategies and individual projects that add economic value to the firm. It withal helps to forecast and develop strategies for raising capital. d)What should be the primary feather tar progress to of managers? Managers Primary objective is stockholder wealth maximization, since Managers be supposed to be working on behalf of sh atomic number 18holders; they should dog policies that enhance sh beholder value. Managers are hired to act in the interest of shareholder at a lower place fiduciary debt instrument. consequently a managers responsibility is to maximize the fundamental determine of the firms roughhewn stock, not just the on-line(prenominal) market determine. 1) Do firms have any responsibilities to club at large Although firms have their protest Objectives in particular, managers who make the decision are interested in their own personal satisfaction, in their employees wellbeing and in the good of their communities and of society at large. maximise ingrained stock value us the most important objective for most corporations.

2) Is stock set maximization good or bad for society? Maximizing intrinsic stock prices profit the society. Some of the reaso ns are 1) to a large extent, the owners of s! tock are society. Most members of the society at a time have an important position in the stock market, either directly or indirectly. Therefore maximizing the stock price improves the quality if life for millions of common citizens. 2) Consumers benefit: Since Stock price maximization required efficient, low cost business that produces in high spirits quality gods and work at the lowest possible cost. This agency that companies must develop products and services that consumers want,...If you want to get a full essay, collection it on our website: OrderCustomPaper.com

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