1.3 The Goal of the Financial Manager
In 2001, Tony Fadell turned to Apple, Inc. (AAPL), to develop his idea for a new MP3 player. Fadell’s idea had already been rejected by his previous employer and another company, but the executives at Apple were enthusiastic about it. They hired Fadell, and the rest is history. The successful sales of the new iPod MP3 player, coupled with efficient uses of financing and day-to-day funding, raised the firm’s stock price. This exemplifies how a management team appointed by a corporate board made an important investment decision that had a very positive effect on the firm’s total value.
As previously mentioned, we can characterize the financial activities of a firm’s management in terms of three important functions ...
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