The Objective in Corporate Finance “If you don’t know where you are going‚ it does not matter how you get there” Aswath Damodaran Stern School of Business Aswath Damodaran 2 First Principles Invest in projects that yield a return greater than the minimum acceptable hurdle rate. • The hurdle rate should be higher for riskier projects and reflect the financing mix used - owners’ funds (equity) or borrowed money (debt) • Returns on projects should be measured based on cash flows
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Aswath Damodaran 2 THE OBJECTIVE IN CORPORATE FINANCE “If you don’t know where you are going‚ it does’nt maCer how you get there” First Principles 3 Aswath Damodaran 3 The Classical Viewpoint 4 ¨ ¨ ¨ ¨ Van Horne: "In this book‚ we assume that the objecKve of the firm
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Chapter 01 Introduction to Financial Management Multiple Choice Questions 1. Tim has been promoted and is now in charge of all fixed asset purchases. In other words‚ Tim is in charge of: A. capital structure management. B. asset allocation. C. risk management. D. capital budgeting. E. working capital management. 2. Stadford‚ Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm’s: A. capital structure. B. capital
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Chapter 001 The Goals and Functions of Financial Management True / False Questions 1. As finance emerged as a new field‚ much emphasis was placed on mergers and acquisitions. TRUE Bloom ’s: Knowledge Difficulty: Easy Learning Objective: 1 2. Inflation is assumed to be a temporary problem that does not affect financial decisions. FALSE Bloom ’s: Understanding Difficulty: Easy Learning Objective: 1 3. Financial Capital is composed of long-term plant and equipment‚ as well as other
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Premise 1: Objective reasoning is to flourish all human happiness in the present and future. Support: Flourishing happiness for everyone consists of thinking about all circumstances. In any situation a person should think about how it would affect others. The things that could affect others could change their life and their levels of happiness. It could also eliminate the suffering of someone in the future if a person considers all point of views for consequences. All people and happiness should
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By Susan Berry and Randy Thomas‚ Ph.D. What’s so smart about SMART? Why has this acronym become part of the vocabulary of project planning and performance management? Objectives that are SMART (Specific‚ Measurable‚ Aligned‚ Realistic/Relevant‚ and Time-bound) are likely to be achieved. When generic‚ off-the shelf objectives get the SMART treatment‚ they emerge as targets that engage focus‚ action‚ feedback and learning. These targets assist development of individual work plans‚ and also
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Street Smart versus Book Smart In his article "Hidden Intellectualism‚" Gerald Graff criticizes those that do not put value into "street smarts." Graff says that knowledge goes far beyond academic learning and continues into our everyday living. He states‚ "The need to prove I was smart and the fear of a beating if I proved it too well." Meaning that if the subjects he enjoyed the most became his main interest he would soon have to face ridicule for wanting to be himself (Graff). Graff’s theory
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Page Content Caffè Nero Facts 3 Environment Analysis 3 SWOT Analysis 5 SMART OBJECTIVES 6 SEGMENTATION 7 Marketing strategies 7 7Ps 8 Monitor and evaluating plan 10
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“The problem with educating stupid people was that they didn’t know they were stupid.” Lucky for me‚ I knew I wasn’t too smart in my early years. For starters‚ I couldn’t read at the beginning of first grade‚ and I understood that I’d need to work hard to get to where I needed to be. In second grade‚ I was at the bottom of my class in the number of math facts we could do in five minutes. After that I started to excel in my grades. Then in third grade I was one of seven fourth grade students to be
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Small & Medium Enterprises Development Policies in Myanmar Table of Contents Chapter 1 Overview of the SME Policies 4-1 4-3 4-6 4-9 4-10 1-(1) Definition of SME and Its Basis………………..……………………. 1-(2) Environment and Conditions Surrounding SMEs…………………… 1-(3) Legislations for SMEs………………..………………..…………….. 1-(4) Planning and Implementation of SME Policy……………………….. 1-(5) Financial Support for Small & Medium Enterprise Policy………….. 1-(6) Breakdown of Responsibilities for Central and Regional
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