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What is finance?
Financial Management deals with the
decisions of a firm related to investment,
financing and dividend (Veshvanath)
To carry on business, a firm invests in
tangible assets like plant and machinery,
buildings, and intangible assets like goodwill
and patents. This comprises the investment
decision
Financial Managers
Decisions
Working capital
management
Objective of financial
managers
Finance theoreticians generally agree that the
objective of a firm is to maximize wealth
Whose wealth? whether it should be the
wealth of shareholders or the wealth of the
firm, which includes bondholders and
preferred stockholders