CHAPTER 6
Financial Management and Financing
In the previous five chapters we have discussed some of the concepts and analytics of financial management. In this chapter we start the discussion of the actual financing of the firm and the implementation of the major decisions of the financial manager. However, before beginning the decisions regarding financing, it is useful to develop a framework that ties together the different types of financial decisions.
A Framework for Financial Decision Making
In Chapter 2 we discussed how finance is the management of the trade-offs between return and risk, or more appropriately, between cash flow and risk. If the business managers are solely concerned about financial wealth, then this would be where the ...
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