Answer To: the primary financial objective of corporate finance is usually taken to be the maximisation of...
Mayuri answered on Sep 26 2022
The primary financial objective of corporate finance is usually taken to be maximization of the shareholders wealth which is related to the traditional corporate finance but as the time grows, the perspective change, according to the modern corporate finance, the objective is not limited to the maximization of the shareholder’s wealth, but it also includes Social welfare and growth. The other objectives of corporate finance can be as follows:
· Decision Making: There are many crucial decisions that must be done based on resources that we have. If we are investing in a proposal, we will calculate NPV (Net Present Value) to find out the proposal is financially viable or not. There can be chances that project is not...