Session 2: The End Game for a Business!

(Towards the start of the class, right after I turn to packet 1, the slides did not sync with the class, for about 10 minutes. Please use the link to download the slides, if you want to see the slides).
In this class, we started on what the objective in running a business should be. While corporate finance states it to be maximizing firm value, it is often practiced as maximizing stock price. To make the world safe for stock price maximization, we do have to make key assumptions: that managers act in the best interests of stockholders, that lenders are fully protected, that information flows to rational investors and that there are no social costs. We started on why one of these assumptions, that stockholders have power over managers, fails and we will continue ripping the Utopian world apart next class.
Slides: https://www.stern.nyu.edu/~adamodar/podcasts/cfspr22/session2slides.pdf
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session2atest.pdf
Post class test solution: https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session2asoln.pdf

Видео Session 2: The End Game for a Business! канала Aswath Damodaran