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What is Rationale and behind profitability maximisation
Rationale & behind profitability maximisation, as a guide to financial decision making, is simple. Profit is a test of economic efficiency. It provides yardstick by which economic performance can be judged. Furthermore, it results in efficient allocation of resources, as resources tend to be directed to uses which in terms of profitability are the most desirable. Ultimately, it ensures maximum social welfare. Individual search for maximum profitability provides the famous "invisible hand" by which total economic welfare is maximised.
Remaining differences with US GAAP IFRS 8 comprise intangible assets as part of the non-current assets. SFAS 131 only refers to tangible assets. IFRS 8 requires method
Q. What are assumptions of Walters dividend model? 1. Constant Return and Cost of Capital: - The Walter' model presume that the firm's rate of return and its cost of capital ar
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Q. Define the Cash Budget? Cash Budget: - A cash budget is an estimation of cash receipts and cash payments for a future period of time. It is prepared to predict the cash requ
Recent surveys of corporate exchange risk management practices point out that many U.S. firms simply do not hedge. How would you explain this result? Answer: There can be severa
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