MBA Day by Day, 2nd Edition

Chapter 8

Finance 2: corporate finance and governance

You really should know what your business is worth

I say, not in a braggadocios way, I’ve made billions and billions of dollars dealing with people all around the world.

Donald J. Trump (CNN Republican debate, 16 September 2015)

In a nutshell

Corporate finance is part of strategic thinking because collectively managers must assess, implement and evaluate a given course of future action in terms of its ability to create or destroy value. The most common metrics used to measure this are financial. In Part 2, we looked at finance in terms of reporting past performance, but this is not the same thing as valuing the business. A business is worth what it can be expected to do in the future. ...