Lecture Business finance - Chapter 2: Consumption, investment and the capital market
Lecture Business finance - Chapter 2: Consumption, investment and the capital market
Chapter 2 introduces you to consumption, investment and the capital market. After completing this unit, you should be able to: Explain how a company’s managers can, in principle, make financial decisions that will be supported by all shareholders; explain how the existence of a capital market makes this result possible; identify the company’s optimal investment/dividend policy under conditions of certainty.