Goals of Corporate Finance

Finance management is a process of planning decisions in order to
maximize the owner's wealth. Financial managers have a major role in cash mangement, in acquisition,raising & allocating financial capital, trade off betweek risk and return.

Goals of Corporate Finance
1. Stockholder wealth maximization.
2. Profit Maximization.
3. Managerial reward maximization.
4. Behavioral goals and
5. Social Responsibilities.

Profit Maximization:
* single Period (short period less than a year).
* Organization can maximize short-term profits at the expense of its long term profitability.

Stockholder wealth maximization
* Wealth for long term
* Risk or uncertainty
* Timing of Returns
* Stockholder's Return.