Archive about 'Introduction'
Tweet The different type of Dividend Pay-out policies can be roughly categorized as follows: The “bird-in-the-hand view, whereby the shareholders or owners prefer to be paid high dividend. Here, the shareholders only think of getting immediate dividends over less certain and more distant capital gain. Pay a low payout ratio as shareholders prefer capital gains [...]
Tweet Financial Management is the efficient and effective planning and controlling of financial resources so as to maximize profitability and ensuring liquidity for an individual(called personal finance), government(called public finance) and for profit and non-profit organization/firm (called corporate or managerial finance). Generally, it involves balancing risks and profitability. The decision function of financial management can [...]
Tweet In financial management, included is treasury management which is all about the efficient management of liquidity and financial risk. Some of the major roles/functions of Treasury management are as follows: 1 Cash management The efficient collection and repayment of cash to both insiders and to third parties. 2 Currency management Manages the foreign currency [...]
Tweet Financial markets Relates to a place/meeting place/forums that facilitates the flow of funds amongst investors, firms, government units,etc. It facilitates the suppliers of loans, funds to those who require them. Basically, there are two types of financial markets: (1) Money Market Dealing with short-term securities that have a life of one year or less. [...]
What are the Goals Of The Firm and explain profit maximization and shareholders' wealth maximization.
Tweet From Finance’s stand-point there are two main goals: a. Profit Maximization b. Shareholders’ Wealth Maximization Let’s look at what is PROFIT MAXIMIZATION: Simply a single-period or a short-term goal to be achieved within one year Management mainly focus on efficient utilization of capital resources to maximize profits WITHOUT considering the consequences of its actions [...]
Tweet The main objective of the Finance Manager is to manage funds in such a way so as to ensure their optimum utilization and their procurement in a manner that the risk, cost and control considerations are properly balanced in a given situation. To achieve the objective the Finance Manager performs the following functions in [...]
Tweet What Is Financial Management? Financial management involves the analyzing and interpreting the financial statement so as to be able to plan and control the business. Unlike bookkeeping or accounting, financial management has a wider spectrum and its goals are as follows:- to attain profitability and liquidity for an enterprise. In the very short run, [...]