Both accountants and financiers are interested in firm value. But the principal difference between them is that the accountants try to approximate changes in the current value of the firm, while the latter try to understand the exact timing of hard cash inflows and outflows over the entire future. The former want to learn about [...]
Archive of posts tagged Finance
Financial Statements
We already know that the value of our firm is determined by its underlying projects. We already know that these projects have cash flows that we use in our NPV analyses. So, why should you bother with learning about what companies say in their financials? A rose is a rose is a rose, isn’t it? [...]