A company's managers make decisions that affect operations, financing, corporate culture, and many other organizational characteristics. These decisions affect the operating and financing choices the company makes, which in turn affect free cash flow and risk. Details Value Corporate governance Operating decisions Free cash flow (FCF) Financing decisions Weighted average cost of capital (WACC) FCF FCF (1+WACC) (1+WACC FCF (1+WACC) 4. Discuss how corporate governance may affect the value of the firm. Discuss the corporate governance of Nike and Adidas and whether this difference plays a role in the financial outcome observed?