https://padlet.com/irmazura/08042019 Sec 10 en-us 2019-04-08 02:27:53 UTC 2019-04-09 06:36:59 UTC hello@padlet.com https://padlet.com/irmazura/08042019/wish/349343422 Q1.7
An IPO should be a primary market transaction as IPO is called Initial Public Offering. It is like an offering of the primary market where a private company decides to sell stock to the public for the first time. 
Q.10
It can be arguable depends on individual perspectives. In the market economy, everything has a price. Every company has a goal to maximize the value of the stock. However, we should imply an optimal level of ethical behaviour in our business and follow the standardised rules and regulations. For example, as a chemical factory, we should implement an ethical solution to discard our waste residual. It might be costly and directly affect our revenue but the environment safety is always our safety. According to Energy, Science, Technology, Environment and Climate Change Minister(Yeo Bee Yin), Pasir Gudang chemical pollution has been a serious problem like causing river pollution and affecting thousand of residents.

]]> 2019-04-08 02:34:35 UTC https://padlet.com/irmazura/08042019/wish/349343422 https://padlet.com/irmazura/08042019/wish/349345195 1. Capital Budgeting
-Known as investment decisions 
-Determining which project or assets should be invested in.
-Business will opt to invest in projects that produce most returns.
Exp: Investments in new plants, new machinery, new products etc.

2.Capital Structure
-Also known as financing decisions
-Determines the best way to finance a project.
Exp: Get a loan,  equity, issuing shares to public

3.Working Capital Management
-Decisions of everyday activities
Exp: ways to raise cash to pay for utilities, distributing raw materials for everyday production.

]]> 2019-04-08 02:45:53 UTC https://padlet.com/irmazura/08042019/wish/349345195 https://padlet.com/irmazura/08042019/wish/349346627 Q1.11 

The goal to maximise stock value will be the same in a foreign country but they have to consider the economic growth, currency and political risks of that country which affects the decision making of financial managers and investors. ]]> 2019-04-08 02:54:17 UTC https://padlet.com/irmazura/08042019/wish/349346627 https://padlet.com/irmazura/08042019/wish/349347673 Agency problem will be less severe in Germany and Japan than in United States as the stocks owned by financial institutions and other corporations rely on mutual cooperation, unlike stock owned by individuals may allow them to have different goals which cause conflict of interest  between managers and stockholders. 

The implications are the company has to pay extra agency cost to the managers (incentives). They also have to monitor the managers to keep them in check.

]]> 2019-04-08 02:59:36 UTC https://padlet.com/irmazura/08042019/wish/349347673 https://padlet.com/irmazura/08042019/wish/349348898 Goal of financial management
- to maximise market value of shares

Agency problems

Shareholders own the company. The corporation is a separation of ownership and management. Shareholders elect the board of directors, who are in charge of appointing the firm’s management. The separation of ownership from control in the corporate form of organisation is what causes agency problems to exist. If managers act in such a way that is not in the firm’s best interest, they may contradict the goal of maximising share price of the equity of the firm. 


]]> 2019-04-08 03:07:32 UTC https://padlet.com/irmazura/08042019/wish/349348898