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Referring to our novel, How Finance Works - chapter 6, module 7, discuss these areas a) Discuss the decision tree (retain/distribute) of the capital allocation
Referring to our novel, How Finance Works - chapter 6, module 7, discuss these areas a) Discuss the decision tree (retain/distribute) of the capital allocation (free cash flow) value creation companies strategize. b) Organic growth is investing in positive NPV projects. Inorganic growth (mergers and acquisitions) discuss these two decisions c) Asymmetric information / Agency Problems. Discuss the signals given when companies either distribute cash (dividends) and/or initiate share buybacks. d) Venture Financing As companies grow and require more funding Discuss how these impacts (value) the Founders original equity and how various series of funding impact (value) founder's equity
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