Beruflich Dokumente
Kultur Dokumente
• INVESTMENT PRINCIPLE
• FINANCING PRINCIPLE
• DIVIDEND PRINCIPLE
Investment
• Generating Revenue
• Cost cutting
• Includes strategic decisions regarding which
markets to enter
• Whether to make acquisitions of other
companies
INVESTMENT PRINCIPLE
INVESTMENT PRINCIPLE
• To decide if a project is acceptable:
Financing Type
•What types of debt and equity financing should
the firm use?
FINANCING MIX
BASIC PROPOSITION
Firm will minimize its risks and maximise its
capacity to use borrowed funds
Match up to the cash flows on debts and
assets being financed
Add additional considerations relating to taxes
and external monitors such as CRAs and
Research Analysts
DIVIDEND PRINCIPLE
2019/8/25