ds in assets and projects with the aim of making profit. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.

To play his role well, the factoring consultant has different tools, such as cost of capital, which indicates the appropriate source of finance. Normally, the sources with minimum cost

The ultimate goal of factoring consultants is to maximize the wealth of the shareholders. This is represented by the market value of the shares of the factoring companies. Wealth is defined as the net present worth of the company, i.e., the present value of all future returns. This is determined by capitalizing the net income after taxes, which is achieved by discounting the return expected by the investors - also known as cost of equity.

Though the wealth maximization seems superior to profit maximization objective, it is to be noted that the former is based upon the latter. The market price of shares, which is the indicator of the wealth of the firm, is based on the long-term returns of the firm. The returns that accrue to the investor would be a function of the earnings of the company. In addition to serving the basic of objective of the firm, consultants has some specific objectives like, maximizing profit- both short-term and long-term profit, minimizing risk, maintain control, achieve flexibility, ensure liquidity and maintain financial discipline in the organization.

With the development of finance as a profession and as an important area of management, the role of consultants has undergone drastic changes in recent times. Presently, the consultants are in charge of determining the total amount of capital required (both working capital and fixed capital). This is done by proper forecasting and planning of finance. They also play a pivotal part in investing the funds in assets and projects with the aim of making profit. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.

To play his role well, the factoring consultant has different tools, such as cost of capital, which indicates the appropriate source of finance. Normally, the sources with minimum costs

e return expected by the investors - also known as cost of equity.

Though the wealth maximization seems superior to profit maximization objective, it is to be noted that the former is based upon the latter. The market price of shares, which is the indicator of the wealth of the firm, is based on the long-term returns of the firm. The returns that accrue to the investor would be a function of the earnings of the company. In addition to serving the basic of objective of the firm, consultants has some specific objectives like, maximizing profit- both short-term and long-term profit, minimizing risk, maintain control, achieve flexibility, ensure liquidity and maintain financial discipline in the organization.

With the development of finance as a profession and as an important area of management, the role of consultants has undergone drastic changes in recent times. Presently, the consultants are in charge of determining the total amount of capital required (both working capital and fixed capital). This is done by proper forecasting and planning of finance. They also play a pivotal part in investing the funds in assets and projects with the aim of making profit. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.

To play his role well, the factoring consultant has different tools, such as cost of capital, which indicates the appropriate source of finance. Normally, the sources with minimum cost

would be a function of the earnings of the company. In addition to serving the basic of objective of the firm, consultants has some specific objectives like, maximizing profit- both short-term and long-term profit, minimizing risk, maintain control, achieve flexibility, ensure liquidity and maintain financial discipline in the organization.

With the development of finance as a profession and as an important area of management, the role of consultants has undergone drastic changes in recent times. Presently, the consultants are in charge of determining the total amount of capital required (both working capital and fixed capital). This is done by proper forecasting and planning of finance. They also play a pivotal part in investing the funds in assets and projects with the aim of making profit. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.

To play his role well, the factoring consultant has different tools, such as cost of capital, which indicates the appropriate source of finance. Normally, the sources with minimum cost

ance as a profession and as an important area of management, the role of consultants has undergone drastic changes in recent times. Presently, the consultants are in charge of determining the total amount of capital required (both working capital and fixed capital). This is done by proper forecasting and planning of finance. They also play a pivotal part in investing the funds in assets and projects with the aim of making profit. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.

To play his role well, the factoring consultant has different tools, such as cost of capital, which indicates the appropriate source of finance. Normally, the sources with minimum cost

ds in assets and projects with the aim of making profit. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.

To play his role well, the factoring consultant has different tools, such as cost of capital, which indicates the appropriate source of finance. Normally, the sources with minimum costs are selected so that the weighted average cost of capital can be kept at the minimum. Then there is leverage to decide the proportion between ownership funds and outside funds. Usually, outside financing is adopted to magnify the earnings on ownership funds, provided the outside financing is available at a lower cost and without much additional risk.