Financial Management

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: 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 Financial management refers to the efficient and effective management of money in such a manner to accomplish the objectives of…

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…

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 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…

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 refer to the efficient and effective management of money in such a manner to accomplish the objectives of the organization.…

Modified IRR The internal rate of return, or IRR, is one of the most popular methods of evaluating potential projects. The discount rate often used…

Risk management: Dealing with uncertainties has come to be known as risk management. It is the procedure of identifying, assessing, and controlling threats to an…