Some aspects of financing a company and profit determination

Abstract

Chapter I is devoted to the development of an optimum finance theory, for a firm under near static conditions. After setting the stage (1), the known areas of conflict between shareholders and management are restated (2, 3, 5-7 ) and one particular finance theory, which ignores this conflict, is reviewed (4). The conflict mentioned in the previous paragraph leads me to reject any normative finance theory, which maximises the well being of present-owners (8). Evidence in the statistical section (tables VIII, IX, X), appears to justify this rejection.