Managerial Finance Essay

The financial activities regard running a corporation - Managerial Finance Essay introduction. In other words, Corporate Finance is mainly concerned with maximizing shareholder value through long-term as well as short-term financial planning along with the implementation of different strategies. Thus, this includes everything from capital investment decisions to investment banking falls under the domain of corporate finance.

On the other hand, the shareholders own a corporation or you could say corporations are owned by its stockholders. This could range from a single shareholder in a closely held corporation to hundreds of thousands of shareholders in a publicly traded organization.

We will write a custom essay sample on
Managerial Finance
specifically for you for only $13.9/page
Order now

More Essay Examples on Finance Rubric

Furthermore, some of the key terms that associated with Corporate or Managerial finance would be Liability – financial claims towards an organization assets which is not consider equity, Cash flows which consider money moving through companies, Corporation which is a distinct legal entity and Assets that could help the business in return.

In addition, three main concerns are Capital Budgeting which is the process by which the firm decides which long-term investments to make. Next, Capital Structure which represents the proportions of the firm’s financing from current and long-term debt and equity. Lastly, Net working capital which considers short-term management of assets and liabilities.

References

Ross, Westerfield, & Jaffe. (2013). Corporate Finance. New York: McGraw-Hill Irwin.

Can the goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior?

All public organizations have a goal of maximizing shareholder value. However, if they did not, they would more than likely not be in business for a long period of time. A lot of the huge accounting frauds that we heard about throughout the years started due to management gets nervous about shareholder value. Management sees that the return is less than expected, and start to think of ways to raise shareholder value. Unfortunately for organizations, especially organizations that are doing poorly, the numbers are the numbers. As a result, there is no ethical way to raise shareholder value, or maximize the value of the company’s stock in anyway other than what the true numbers are that should go on the organization’s financial statements.

Meanwhile, once management make any changes, manipulates, or interfere with any financial data or numbers that eventually go onto any of the financial statements with the intention to increase shareholder value, or increase the value of the stock other than the actual values, the act is unethical as well as illegal most of the times. Furthermore, whenever a manager or any other employees manipulates numbers to increase the stock value at any given time, or does anything to make the company look more profitable than they actually are, it is definitely unethical and there is no exceptions, as well as could be illegal depending on the act.

References

Ross, S., Westerfield, R. & Jaffe, J. (2013). Corporate Finance.(10th ed). New York: McGraw-

Hill Irwin.

Choose Type of service

Choose writer quality

Page count

1 page 275 words

Deadline

Order Creative Sample Now

Haven’t Found A Paper?

Let us create the best one for you! What is your topic?

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.

Eric from Graduateway Hi there, would you like to get an essay? What is your topic? Let me help you

logo

Haven't found the Essay You Want?

Get your custom essay sample

For Only $13.90/page