How financial management decisions lead to shareholder wealth maximization ? In this crucial section, we look at a framework for maximizing shareholder wealth through financial management decisions. An organization should have sensible financing, investment, and dividend decisions. These decisions are interrelated, mostly cash flow. Investment decision As a financial analyst…
Stakeholders objectives, agency problem & goal congruence In this section, we are looking at the stakeholder's objectives & how agency problems could arise in the long term. Also, we will discuss how goal congruence will dilute the effect of the agency problem. Therefore as a finance manager, you need to…
How corporate strategy link with objectives of companies As a corporate strategy analyst, you can identify there are financial & non-financial objectives are there to be made to meet the corporate strategies. Financial objectives The main goal of a company considers as profit maximization. But shareholders may still be disappointed…