This article throws light upon the top two objectives of financial management. The objectives are: 1. Profit Maximisation 2. Wealth Maximisation. Financial Management: Objective # 1. Profit Maximisation: Profit earning is the main aim of every economic activity. A business being an economic institution must earn profit to cover its costs and provide funds for growth. No business can survive [...]
This article throws light upon the top three types of financial decisions. The types are: 1. Investment decisions 2. Financing decisions 3. Dividend decisions. Type # 1. Investment Decisions: Investment Decision relates to the determination of total amount of assets to be held in the firm, the composition of these assets and the business risk complexions of the firm as [...]
This article throws light upon the top five applications of time value techniques. The applications are: 1. Sinking Fund Problems 2. Capital Recovery Problems 3. Compound Growth Rate Problems 4. Interest Rate Problems 5. Valuation Problems. Time Value Techniques: Application # 1. Sinking Fund Problems: A financial manager may have to determine the amount of annual payments so as to [...]