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This lecture provides an in-depth overview of financial management, encompassing core areas such as corporate finance, macro finance, and the implications of globalization. Key concepts include marginal analysis, cash flow versus accrual basis accounting, and the pursuit of maximum profits versus maximum wealth. Additionally, we delve into the principal-agent problem, exploring its significance in corporate finance and its impact on decision-making within organizations. Gain a comprehensive understanding of how these principles shape financial strategies in the business world.
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