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18 download_doc-12.php - C1 I Intro a The overriding goal...

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C1 I. Intro a. The overriding goal for a CFO is to maximize the value (price) of a firm’s stock shares b. The idea of valuation i. Full Firm value 1. Enterprise value a. The process by which one estimates the fair market or competitive value of the total company II. Project analysis… determining whether a business or strategy will create value for a company a. General idea and project IRR i. Project: represents some set of plans (ideas & strategies) that a firm is considering as part of some single decision ii. Capital investment function 1. The management of the investment potential of a firm’s combined portfolio of projects a. How managers can use existing corporate assets to create as much enterprise value as possible i. Also considers the idea that from time to time have the opportunity to capture additional value by acquiring other firms 2. Stocks can be thought of as portfolios of business projects iii. What superior investments mean in projects 1. Have access to a bargain iv. Stock holders expect projects with superior returns
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This note was uploaded on 04/18/2011 for the course BUS 370 taught by Professor Camp during the Winter '09 term at Indiana.

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18 download_doc-12.php - C1 I Intro a The overriding goal...

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