Homework Help

How can financial management help to maximize their primary focus? ”The principal...

sjamil912's profile pic

Posted via web

dislike 1 like

How can financial management help to maximize their primary focus?

”The principal focus of finance is on decisions and actions which affect the value of the firm.”

1 Answer | Add Yours

karythcara's profile pic

Posted (Answer #1)

dislike 1 like

One means to maximize the primary focus is through what is called "The Financing Principle." According to this principle, the primary focus of business through decisions and action is maximized when:

  • the "financing mix" of business capitalization investments is a mix of equity and debt (stock and bond) instruments.
  • the financing mix matches the "nature of the assets being financed." (New York University)

Sources:

1 Reply | Hide Replies

sjamil912's profile pic

Posted (Reply #1)

dislike 0 like

thanks sir

Join to answer this question

Join a community of thousands of dedicated teachers and students.

Join eNotes