A theory which suggests that a firm will attempt to maximize its present value, no matter what the firm owners may think are their personal objectives. The separation theorem hypothesizes that firm owners will make decisions to first maximize the present value, and only then make decisions which will bring them closer to reaching their personal goals. This theorem was developed by the well-known economist Irving Fisher.
Related information about Fisher separation theorem:
- Fisher separation theorem - Wikipedia, the free encyclopedia
In economics, the Fisher separation theorem asserts that the objective of a corporation will be the maximization of its present value, regardless of the ...
- Fisher's Separation Theorem Definition | Investopedia
A theory stating that: 1. A firm's choice of investments are separate from its owner's attitudes towards the investments. 2. It is possible to separate a firm's ...
- What is Fisher's separation theorem?
May 20, 2009 ... Fisher's separation theorem stipulates that the goal of any firm is to increase its value to the fullest extent, regardless of the preferences of the.
- Perfect capital market - Fisher separation theorem
Model: Perfect capital market - Fisher separation theorem. 1 Introduction. This text presents the perfect capital market model and the associated Fisher ...
- Fisher Separation Theorem & Consumer Optimization 1. TWO ...
Fisher Separation Theorem & Consumer Optimization. 1. TWO-PERIOD CONSUMPTION AND INVESTMENT IN ABSENCE OF RISK. Consider the condition of ...
- Fisher separation theorem: Definition from Answers.com
Fisher's Separation Theorem A theory stating that: 1. A firm's choice of investments are separate from its owner's attitudes towards the investments.
- Corporate finance> Fisher separation theorem - Homework Help ...
The fisher's separation theorem is broken down into three assertions. The first assertion is that a firm makes its investments rationally i.e. a firm's investment ...
- Fisher's Separation Theorem financial definition of Fisher's ...
Fisher's Separation Theorem. Also found in: Wikipedia, 0.02 sec. Fisher's separation theorem. The notion that a firm's choice of investments is separate from its ...