Value Meter Time value of money is based on the idea that a fixed sum of money available today is worth more than the same amount of money available in future.
Some of the most important objectives of financial management are as follows: 1. Profit Maximization 2. Wealth (or value) Maximization.
Earlier, financial management was restricted to acquisition of funds, i.e. it was concerned with the liability side of balance sheet but now its scope has undergone a significant change to include the asset side, i.e. the allocation of acquired funds among various assets to increase profitability of the firm.