The role of financial management

Reference no: EM133062283

THE GOALS AND FUNCTIONS OF FINANCIAL MANAGEMENT

DISCUSSION

I. The role of financial management has substantially increased in importance.

II. Finance as a field of study has evolved over time in response to changing business management needs.

III. Functions of Financial Management. A financial manager is responsible for financing an efficient level and composition of assets by obtaining financing through the most appropriate means.

IV. Corporate Governance.

V. Goals of Financial Management.

VI. The Role of Financial Markets. Wealth maximization depends on the perception and expectations of the market. Through daily price changes in the common stock of each publicly traded company, the market provides managers with a performance report card.

Review Of Accounting

Discussion on below
I: Financial Statements
II: Depreciation and Funds Flow
III. Another important concept is that of free cash flow.
IV. Income Tax Considerations

Financial Analysis

Discussion on below
I. Ratio analysis
II. Impact of Inflation and Disinflation on Financial Analysis
III. Other Elements of Distortion in Reported Income

Financial Forecasting
Discussion on below
I. Need for Financial Planning
II. The most comprehensive means for doing financial planning is through the development of pro forma financial statements; namely the pro forma income statement, the cash budget, and the pro forma balance sheet.
III. Percent-of-Sales Method: Shortcut, less exact, alternative for determining financial needs

Operating And Financial Leverage
Discussion on below
I. Leverage in a Business: The use of fixed charge obligations with the intent of magnifying the potential return to the firm.
II. Operating Leverage
III. Financial Leverage: A measure of the amount of debt used in the capital structure of the firm.
IV. Combining Operating and Financial Leverage

Reference no: EM133062283

Questions Cloud

Distributed ledger technology : Blockchain innovation is here and there alluded to as the Distributed Ledger Technology (DLT).

Calculate the internal growth rate : Calculate the internal growth rate given the following information: total assets $450,000; net income $100,000; dividends paid $35,000.

Describe used utility and cloud computing services : Describe the used utility and cloud computing services and how these services might replace or augment the initial system design.

High performance gaming gear : Do the valuation for your group project company via DCF and comparable methods

The role of financial management : The role of financial management has substantially increased in importance and Income Tax Considerations

Calculate the probability of losing money : Given the following price and dividend information, calculate the following information: $1 invested equivalent. (Round to 4 decimals)

Growing perpetuity or the constant perpetuity : Suppose the interest rate is 5% per year. You are offered two perpetuities. The first pays a constant amount of $100 per year with the first payment a year from

Company required return on common equity : What is your company's required return on common equity? You know a few key things: The 10-year US Treasury note has a yield of 2.65%.

Difficulties with constructing forecasting models : Discuss the difficulties with constructing forecasting models in general and apply those difficulties on regression models.

User Account

All Pages