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In addition, if left to engage in their own goals rather than those of shareholders, financial managers will choose to make decisions that allows them to rely on internally generated cash flows rather than depending on outside financial markets. The result of these two goals is that managers may have a different objective than shareholders; that of maximizing corporate wealth, which is not necessarily the same thing as shareholder wealth.
The financial manager is responsible for the effective management of finance operations and to make sure the activities contribute to the successful management of the business...
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Common topics in this essay:
- DEBT-EQUITY MIX SIMULATION
- Debt & Equity Instruments
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