The goal achievement of a firm on any project is mainly revolving on wealth maximization i-e Cashflows/Share value maximization. The initiative of a company/firm  on wealth maximization not only leans on a selection  of a project but also it starts from raising of financial resources competitively and ends with effective utilization of themselves . The understanding on Basics of Financial management will set a tone for effective learning of various decisions of Financial Management .The time value of money and its applications ,Risk and Return are explored to study the relationship of various decisions and wealth maximization of share holders . To complete the study of risk profile of a firm , it is imperative to learn the relationship between fixed cost and wealth maximization of a firm