Discussion: "An Overview of Financial Management"
Please respond to the following:
• * From the e-Activity, examine ethical behavior within firms in relation to financial management. Provide two examples of companies that have been guilty of ethics-based malfeasance related to financial management and determine why their comeuppance was deserved.
• * From the scenario, recommend two actions that Trevose Fitness Center (TFC) could take in order to raise capital that will, in turn, enable it to reach its expansion goals. Defend your response. Support your recommendation with two real-world examples of successful implementations of these actions.
THE KEY QUESTION: WILL YOUR DECISION CREATE VALUE?
A project is financed by either shareholders, who provide equity capital, and/or debt holders, who provide debt capital. The firm's owners want management to increase the firm's value, and for that, a business proposal's expected return must exceed its financing cost.
Before deciding to go ahead with a business proposal, the manager should ask himself/herself the Key Question: Will the proposal create value? The Key Question also applies to current operations.
Basic thoughts on this idea?? What is a Shareholder? What is a Debt Holder? What is Value add?