3OO w0rds ex.plain the diagram below.  *Ex.plain the procedures involved in the financial decision and the investment decision

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question

In 3OO w0rds ex.plain the diagram below. 

*Ex.plain the procedures involved in the financial decision and the investment decision

 

The Finance Decision (External)
Capital
Equity
Debt
Govt. Aid
}
CAPITAL
MARKET
Distributions
Capital
Gains
Acquisition of
Funds
→
Objective
Minimum Cost
of Capital (WACC)
The Investment Decision (Internal)
Disposition of
Funds
Objective
Maximum Cash
Profit (NPV)
Corporate
Objectives
Internal
Maximum Economic Value Added
(EVA)
External
Maximum Market Value Added
(MVA)
Corporate Wealth Maximisation
(Shareprice)
}
Assets
Fixed
Current
MANAGEMENT
POLICY
Retentions
Transcribed Image Text:The Finance Decision (External) Capital Equity Debt Govt. Aid } CAPITAL MARKET Distributions Capital Gains Acquisition of Funds → Objective Minimum Cost of Capital (WACC) The Investment Decision (Internal) Disposition of Funds Objective Maximum Cash Profit (NPV) Corporate Objectives Internal Maximum Economic Value Added (EVA) External Maximum Market Value Added (MVA) Corporate Wealth Maximisation (Shareprice) } Assets Fixed Current MANAGEMENT POLICY Retentions
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Industry Specific Activities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education