FIN60104 Tutorial 1 by Irma Zura https://padlet.com/irmazura/10042019 Sec 4 en-us 2019-04-10 04:06:05 UTC 2025-10-16 18:00:27 UTC hello@padlet.com Group 2 russellshakespeare https://padlet.com/irmazura/10042019/wish/350218133 Q1.6

1. Stockholder own the coorperation

2.Stock holders hire managers and appoint the board of directors and ceo. the managers then run the company on behalf of the stock holders.

3. There may be many stock holders, conflicting view points and agendas. they manage the cooperation with the best interest in the business taking into account the demands of the stock holders 

4. conflicting agendas between stock holders and managers their agendas could differ as the managers main priority is for the business to run with a sufficient amount of cash flow whereas the stock holders main priority is to gain profit from their investments.thus they may have different views of the direction the business goes.

Q1.7 
IPO = primary market 

]]> 2019-04-10 04:34:50 UTC https://padlet.com/irmazura/10042019/wish/350218133 Q1.1 https://padlet.com/irmazura/10042019/wish/350218142 1.investment decision (capital budgeting: long term fixed asset investment)

- investment in plant and machinery
- investment in  research and development
- the decision to enter a new market
- taking over a company

2. financing decision (Capital structure) 
- debt and equity financing
- equity funds supplied by owner
- debt is loan fund

3. working capital management
- using cash to pay operating expenses
- monitoring cash flow assets and liabilities through the ratio analysis.
- Net working capital = CA - CL


Q1.5 
1. maximise shareholder's wealth by higher dividend payments
2. To maximise market value, higher market value increases share price. ]]> 2019-04-10 04:35:00 UTC https://padlet.com/irmazura/10042019/wish/350218142 Grou 4 Q. 1.13 https://padlet.com/irmazura/10042019/wish/350220095 Agency problems in US:
1) communication conflicts and not having mutual interest between managers and stakeholders regarding company decisions. 
2) difficult to raise more capital compared to Japan and Germany.

German and Japan:
1) the conflicts between the managers and stakeholders would be less compared to that if US as the institution will be trusted, however there maybe a risk that this institution will have the power to take over the company 



]]> 2019-04-10 04:48:17 UTC https://padlet.com/irmazura/10042019/wish/350220095 Q1.10 https://padlet.com/irmazura/10042019/wish/350220898 Group 3

Maximising the value of stock may make a company do unethical and illegal behaviour.
Thats why we think all the subject mentioned may be in this frame work.

For instance, Apple use child labour in China in order to produce iPhone X (2018). Workers between 18 years old are not protected by China's Labour Law. Here's apple doing illegal and unethical things by forcing children between 16-18 years old to work forcefully..
These children claimed that they are not paid. The children are supposed to earn $260/month (china's minimum wage). Apple forced these children to work up to 11 hours a day. Again, apple violated China's labour policy because workers between age 16-18 is limited to working a maximum of 8 hours a day. 

]]> 2019-04-10 04:54:03 UTC https://padlet.com/irmazura/10042019/wish/350220898 Q1.11 What is Internantional Firm Goal- Our goal would be the same of maximizing the value of the stock. The differences of financial management in a foreign country are currency exposure, culture, GDP, legal and tax environment. Currency exposure impacts almost all the areas of an international business starting from the purchase supplier, selling to customer, investing in plant and machinery, and fund raising. Q1.13 Agency Problems and Corporate Onwership - The agency problems are likely to be less severe in Germany and Japan compared to United States because individuals that have owned the majority of shares in public corporations tend to have their own vision and goals. Conflict will happen when making decisions as each individuals have their own opinion. Therefore, it will be easier to control and make decisions when the corporate owned by large financial institution compare to individuals shares in public corporation. https://padlet.com/irmazura/10042019/wish/350222478 2019-04-10 05:08:38 UTC https://padlet.com/irmazura/10042019/wish/350222478 https://padlet.com/irmazura/10042019/wish/350225666 2019-04-10 05:35:22 UTC https://padlet.com/irmazura/10042019/wish/350225666 https://padlet.com/irmazura/10042019/wish/350225706 2019-04-10 05:35:43 UTC https://padlet.com/irmazura/10042019/wish/350225706