Which of the following is not one of the main principals of the finance? a. High risk should be compensated with high expected return. b. Market prices are informative about the future prospects of the firm. c. Cash flows are the source of value. d. Capital budgeting is secondary to financing decision.
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The principle that cash flows are the source of value is indeed one of the main principles of finance. Cash flows represent the actual money that is generated or received by an investment or business, and they are a key determinant of the value of an asset or Show more…
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