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'REI Agro Foo...

Question

'REI Agro Food Ltd. is a famous multinational company. Mr. S.K Nagi is its finance manager. He is making efforts to increase the market value of capital invested by the equity shareholders. He already kew it could be possible only when price of the share increases and price of shares increase only if financing, investment and dividend decisions are taken optimally. He did the same and achieved success.
Which objective of financial management has been referred here?
Explain?

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Solution

Interest is an expense while dividend is an appropriation

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