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

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sjamil912 | eNoter

Posted May 21, 2013 at 7:35 AM via web

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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.”

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Kay Morse | College Teacher | (Level 1) Senior Educator

Posted May 21, 2013 at 10:18 PM (Answer #1)

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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)

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Kay Morse

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sjamil912 | eNoter

Posted May 22, 2013 at 5:36 AM (Reply #1)

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thanks sir

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