Managerial functions of Financial Managers Managerial functions of financial managers Financial management refers to the efficient and effective management of money in such a manner to accomplish the objectives of…
Role of Opportunity Cost in discounted cash flow (DCF) analysis Opportunity cost is the potential benefit that is given up when one alternative is selected over another opportunity cost are not recorded in the organization…
How Agency Problem can be solved? Conflicts of interest among stockholders, bondholders and managers are called agency problem. It is assumed that the managers and the shareholder if left alone, will…
Agency Problem Agency Problem: Conflicts of interest among stockholders, bondholders, and managers is called agency problem. It is assumed that the managers and the shareholder if left alone,…
Major goals of Financial Management Major goals of Financial Management Financial management refers to the efficient and effective management of money in such a manner to accomplish the objectives of…
Criticism of Profit Maximization Criticism of Profit Maximization Profit Maximization is a procedure that companies undergo to find out the best output and price levels in order to maximize…
Difference between Business Risk and Financial Risk The term ‘business risks’ refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events. Financial risk is the chance…
Risk and Return Trade off Risk and Return Tradeoff The risk and return tradeoff could easily be called the “ability-to-sleep-at-night test.” It states that the potential return rises with an…
What role should Financial Manager play in modern enterprise? Financial activities of a firm are one of the most important and complex activities of a firm. Therefore in order to take care of these…
Financial Market and its Management Financial Market and its management refer to the efficient and effective management of money in such a manner to accomplish the objectives of the organization.…