Finanzas

Some Fundamental Propositions about Corporate Finance 1
There are several fundamental arguments we will make repeatedly throughout this book. 1. Corporate finance has an internal consistency thatflows from its choice of maximizing firm value as the only objective function and its dependence on a few bedrock principles: Risk has to be rewarded, cash flows matter more than accounting income,markets are not fooled, and every decision a firm makes has an effect on its value. Corporate finance must be view as an integrated whole, rather than a collection of decisions. Investment decisionsgenerally affect financing decisions and vice versa; financing decisions often influence dividend decisions and vice versa. Although there are circumstances under which these decisions may be independentof each other, this is seldom the case in practice. Accordingly, it is unlikely that firms that deal with their problems on a piecemeal basis will ever resolve these problems. For instance, a firm thattakes poor investments may soon find itself with a dividend problem (with insufficient funds to pay dividends) and a financing problem (because the drop in earnings may make it difficult for them tomeet interest expenses). Corporate finance matters to everybody. There is a corporate financial aspect to almost every decision made by a business; though not everyone will find a use for all thecomponents of corporate finance, everyone will find a use for at least some part of it. Marketing managers, corporate strategists, human resource managers, and information technology managers all makecorporate financial decisions every day and often don’t realize it. An understanding of corporate finance will help them make better decisions. Corporate finance is fun. This may seem to be the tallestclaim of all. After all, most people associate corporate finance with numbers, accounting statements, and hardheaded analyses. Although corporate finance is quantitative in tis focus, there is a...