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Q. Show Function of the Financial decision?
Financial decision: the second major decision is involved in financial management is the financial decision the investment decision is the is broadly concerned with the assets mix or the composition of the assets of a firm. The concerned of the financial of the financial decision is with the finance mix. Or capital structure and the leverage. The term capital structure refers to the proportion of the debts and capital the financial decision of the firm relates to the choice of the proportion of this source of the finance investment requirement.
a. Consider the time line below that shows periodic cash flows and interest rates per period. Interest rate/year 0 1 2 3 4 5 6 7 8 9 Time 2,500 -4,000 6,000 -3,700 Cash flows
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