Summary: Fundamentals Of Corporate Finance, Global Edition | 9781292215075 | Jonathan Berk, et al
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Read the summary and the most important questions on Fundamentals of Corporate Finance, Global Edition | 9781292215075 | Jonathan Berk; Peter DeMarzo; Jarrad Harford
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1 Corporate finance and the financial manager
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1.2 the 4 types of firms
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What is a C corp
C Corporations get taxed twice: the company pays corporate income tax and shareholders pay federal income taxes through dividends. -
What is an important difference among types of corporate organizational firms?
The way they are getting taxed -
1.3 the financial manager
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What are the three main task of the financial manager?
1. Make investment decisions.
2. Make financing decisions.
3. Manage short-term cash needs. -
What are the 3 main tasks of a financial manager
1. Make investments decisions
2. Make financing decisions
3. Manage short time cash needs -
What is the goal of the financial manager?
To maximize the the wealth of the owners, the stockholders. -
What is managing working capital
The financial manager must make sure that the firm has enough money on hand to meer its obligations day to day -
What is another way that managers can work in the interest of shareholders?
To discipline them and If shareholders are
unhappy with a CEO’s performance, they could, in principle, pressure the board to oust the
CEO. -
What happens in hostile takeover?
an individual or organization—sometimes known as a corporate raider—purchases a large fraction of a company’s stock and in doing so gets enough votes to replace the board of directors and the CEO. -
1.5 the stock market
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Who are market makers?
Individuals or companies at an exchange who match buyers with sellers. -
What is a limit order?
Order to buy or sell a set amount of a
security at a fixed price.
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