Corporate Finance I
Reading 32. Capital Budgeting
Learning Outcome Statements
f. describe expected relations among an investment's NPV, company value, and share price.
CFA Curriculum, 2020, Volume 4
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Subject 6. Popularity and Usage of the Capital Budgeting Method
Capital budgeting is also relevant to external analysts in estimating the value of stock prices. Theoretically, if a company invests in positive NPV projects, the wealth of its shareholders should increase.
The integrity of a firm's capital budgeting processes can also be used to show how the management pursues its goal of shareholder wealth maximization.
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this stuff is well- summarized
I agree. I was able to fly through this section.