FIN 571 TUTOR Extraordinary Life/fin571tutor.com FIN 571 TUTOR Extraordinary Life/fin571tutor.com | Page 30

profit retained by the firm sale of common stock issuance of debt 2 .( Set 2 ) Short-term finance deals with : acquiring and selling fixed assets . financing long-term projects . capital budgeting . 3 . For a firm to create value it must : avoid the issuance of debt securities . have a greater cash inflow from its stockholders than its outflow to them . avoid payments to the government so dividends can be increased . 3 .( Set 2 ) A stakeholder is any person or entity : owning shares of stock of a corporation . to whom the firm currently owes money .
that initially started a firm and currently has management control over that firm .
owning bonds or other long-term debt issued by a corporation .
other than a stockholder or creditor who potentially has a financial interest in the firm .