Finance Content Summary

FINANCIAL MANAGEMENT


| / |FNANOA
investment ←
fundraising
-
-




OPERATIONS MANAGER returns MARKETS
-
profits → -
→


( reinvestment
↑


CAPITAL BUDGET NG DECISION #INVESTMENT DECISION




FINANCE DECISION / CAPITAL STRUCTURE DEVON #REL BUDGETINGFINANCING
.




FINANCIAL INVESTMENT DECISION



ASSET PRICING #PROFIT PER EQUITY




HTRSHLEIFER MODEL

WITHOUT FINANCIAL MARKET ,
WITHOUT REAL MARKET


# CERTAINTY #THOROKGH IN SIGHT


Start of the peiod E- 0 Current Income CE

End of the period E- 1 Future Income (Fs

E- ^

E-
↳ max
=
CE
CE
-




j
-
- - -




↳ =
(F1 + (Fo
max
f- E-o Konsumpfion)
(Fo




WITH FINANCIAL MARKET ,
WITHOUT REAL MARKET


Risk free market interest rate
-




rf
E- ^
(n mA


↳ max
=
(Fo +
¥-4
(Fn - - - - - •




C, max =
(F, + (Fo ✗
(1 + rf ) =
Lomax (1 + rf )
✗


E-o Konsumption)
(Fo (OMAX