Intrinsic Value
Maximizing the intrinsic value is the main financial goal of managers at publicly owned companies. The intrinsic value and the actual market stock price are determined by several factors, although their underlying foundations are the same. Determinants of Intrinsic Value The value of any asset, including a share of stock, is fundamentally based on the…
Forms of Business Organization
Understanding the structure of a business is crucial because the legal form affects a firm’s operations and how it is ultimately valued. The goal of financial management is to maximize shareholder wealth, which means maximizing the firm’s long-run, true intrinsic value. The form of organization influences how easily a firm can raise capital, which is…
Carlo's Notes 