Chapter 1 - FM function Flashcards
1
Q
Financial management definition
A
The acquisition and deployment of financial resources to achieve key objectives
2
Q
TSR formula
A
(Dividend paid + change in share price) / share price at start of period
3
Q
What is the financing decision?
A
Deciding the best way in which to raise finance
4
Q
Agency theory meaning
A
Managers goals may not be aligned with owners
5
Q
Should managers incentives be based on profits or performance?
A
Performance
