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Unformatted text preview: the transfer ownership Financial Management 1. Investing decision (Capital Budget) What project should we invest in? What stocks or bonds should we buy? How much is a company or security worth? 2. Financial decision Where do we get money for investing? From the owners of the Company (equity)? Goals and Governance-Goal of on ethical manager o Maximize shareholder value (not the same as maximizing profits or market share)-Sometimes managers make decisions which benefit then personally at cost of the shareholders. These are known as agency cost. o This includes both the cost of managers pursuing their own interests and the cost owners pay to monitor them.-Good corporations find ways to make the managers goals match the owners goals...
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