Skip to main content

Earning And Investment Decisions By Financial Manager

Image
By
The tasks of Financial Manager can usually be categorized into two:
 
Managerial Finance Functions:
 
Require skilful planning, control and execution of the financial behavior. It consists of noteworthy managerial finance tasks. These are as:
 
(a) Investment of Long-term asset-mix options:
 
Such decisions (also referred to as capital budgeting judgment) relates to the allotment of funds along with investment projects. They refer to the firm's option to commit current finances to the purchase of permanent assets in hope of future cash inflows from these projects. The investment applications are evaluated in terms of both risk and predictable arrival.



(b) Financing decisions:
 
Financing decision means the decision on the sources of finances to invest on finance projects.  The finance manager ought to decide the proportion of justice and debt. The mix of debt & equity affect the firm's price of financing as well the financial risk. Finance Assignment Help aids in many decisions.
 
(c) Division of earnings decision:
 
The finance manager ought to decide whether the firm ought to allocate all gains to the shareholder, preserve them, or distribute a fraction and hold a portion. The earnings ought to also be distributed to other providers of funds similar to preference shareholder, and debt suppliers of funds such as preference shareholders and debt providers. The firm's divided policy may persuade the determination of the value of the firm and thus the finance manager ought to decide the optimum dividend - payout ratio and thus to maximize the value of the organization.
 
Routine functions:
 
For the competent execution of the managerial finance tasks, routine functions encompass to be executed. Such decisions anxiety procedures and systems and comprise numerous of paper work and time. In most circumstances such decisions are allotted to junior staff in the organization. Few of the noteworthy routine tasks are as below:
 
(a) Regulation of payments and money receipts
(b) Cash balance protection
(c) Regulation and protection of noteworthy documents
(d) Record protection and maintenance

Comments

Post a Comment

Popular posts from this blog

Different approaches to leadership represented on the jury

By
Rent the film, 12 Angry Men (there are at least two versions of it in town). As you view the film, analyze the group discussions and interactions dramatized in the film. Take notes that will provide you with specific examples to illustrate concepts related to small group communication. Issues for Analysis : Your analysis of the jury's process should address each of the five issues listed below (each section is worth 2 points). Describe in detail, specific examples from the film to support your conclusions. 1. Leadership : Describe two different approaches to leadership represented on the jury. What theory or theories do you think best explain(s) the leadership of this group? 2. Participation: Describe the task, maintenance and self-centered roles represented in the film. What were some of the participation problems confronted by the group? How did the group deal with these problems? Click here to view more on this paper Click here for Assignment Help with 100% accuracy from ...
Post a Comment
Read more

Defining stock and debtors system

By Expertsbuzz.com
Under Stock and Debtors System, the head office does not open a Branch Account in its books. It maintains a few control accounts for recording the various branch transactions. These accounts usually are: (i) Branch Stock Account, (ii) Branch Debtors Account, (iii) Branch Expenses Account, (iv) Branch Cash Account (v) Goods sent to Branch Account, and (vi) Branch Fixed Assets Account. At the end of the accounting year, it prepares the Branch Adjustment Account and the Branch Profit & toss Account. This system is used only when goods are invoiced at , selling price which the branch is not allowed to vary. Let us now study the working of each account opened by the head office when such a system is followed. Branch Stock Account: This is the most important account which helps the head office in controlling the branch stock. It shows all branch transactions relating to goods. The goods sent to branches and the sales returns are shown on its debit side, and the sales (both cash and c...
Post a Comment
Read more

Identify and describe the rule of law

By
1. Ken, grateful that Letisha performed life-saving CPR on him after he had suffered a heart attack, writes a document with the following language: "In consideration of Letisha Washington having saved my life, I hereby promise to pay her $250 per week for life. Signed [Ken Smith]." For the next 3 years, he faithfully makes the weekly payments, and then stops. Letisha, upset that Ken broke his word to her, sues him seeking to reinstate the payments. Was there a valid contract formed in this instance? Why or why not? 2. Imagine that Alexandra promises to give Rasputin $1000 if he stops drinking alcohol for one week. If Rasputin does so, is a contract formed ? 3. Sami walks into a restaurant. She is given a menu, which indicates that lobster is $30. Sami orders the lobster. It arrives, and Sami thinks it is very tasty. When the bill arrives, Sami tries to execute a clever ploy she learned about in her business law class. She writes a check to the restaurant for $20, and writes...
Post a Comment
Read more