Finance One-liner
The primary objective of financial management is to β
Maximize shareholder wealth
The ratio that measures a companyβs ability to pay short-term obligations β
Current ratio
The market where new securities are issued is known as β
Primary market
Capital budgeting decisions are based on β
Long-term investments
The time value of money concept is best reflected by β
Discounting cash flows
The cost of capital represents β
Minimum expected return
A higher debt-equity ratio indicates β
Greater financial risk
Preference shares typically offer β
Fixed dividend
The main function of a financial intermediary β
Channel funds from savers to borrowers
The most liquid asset in financial accounting is β
Cash
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