1 Framwork and T value公司金融.docVIP

PAGE PAGE 15 A FRAMEWORK OF CORPORATE FINANCE The goal of financial management: to maximize the shareholders’ wealth. Three questions: What should the company invest (so as to earn good returns)? What is the lowest cost to get money (borrow or issue equity) in order to invest? How much cash needed to keep the company running? Work Map. Current Liabilities Current assets Net working capital Long-term debt Fixedassets Shareholders’ equity Assets (investment): Evaluation Compounding discounting Bond valuation