Corporate Finance, 2e by Smart, Megginson, G.pptVIP

Corporate Finance, 2eby Smart, Megginson, Gitman Chapter 1The Scope Of Corporate Finance Professor XXXXX Course Name / Number What is Corporate Finance? The activities involved in managing cash flows in a business environment The Core Principles of Finance The time value of money The opportunity to earn a return on invested funds means that a dollar today is worth more than a dollar in the future. Compensation for risk Investors expect compensation for bearing risk. The Core Principles of Finance Don’t put your eggs in one basket Investors can achieve a more favorable trade-off between r