Tag Archives: maximizing shareholders wealth

Wealth & Profit

The foundation of financial management involve 5 basic principles of the economics. These principles are the followings: 1) Cash Flow is What Matters 2) Money has a time value 3) Risk requires a reward 4) Market prices are generally right 5) Conflicts of interest cause agency problems These 5 basic concepts make countries’ or individuals’ financial statements better off. As a student of finance you have to know foundations of financial movements. First of all you have to know that