Explain various aspect of finance that management understand

Assignment Help Financial Management
Reference no: EM131173654

Managerial Finance DQ

The Role of Financial Management in a Firm

Examine the role of management as it relates to finance in a corporation. In your post, discuss the role of management by addressing the following prompts:

• Explain the various aspects of finance that management must understand.

• Describe why a manager needs to understand the characteristics and importance of financial markets including their liquidity, competitiveness, and efficiency.

• Interpret the function of the Financial Balance Sheet in assisting in management's decision making process.

• Discuss what could happen if management does not fulfill responsibilities related to finance. Share a real world example from your own professional experience or from an external source.

Your post should be 200-250 words in length.

Short Term View or Long Term View?

After reading the first two chapters of your textbook, evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits. In your post, explain what is meant by this statement. Describe how management might decide whether to focus on short term or long term goals and how that decision impacts the organization. Next, using the financial balance sheet as displayed in the text, compute an example of how focusing on short term profits can be detrimental to long term profits. Share your opinion regarding whether you feel it's a better option to focus on short term or long term goals. Use evidence from the text or external sources to support your position. Your post should be 200-250 words in length.

Reference no: EM131173654

Questions Cloud

Greater percentage of republican : What is the probability that the survey will show a greater percentage of Republican voters in the second state than in the first state?
Find the probability that an even number : Question 1: A die is rolled, find the probability that an even number is obtained. Question 2: Two coins are tossed, find the probability that two heads are obtained.
Thinking about bivariate distributions : In this unit you are thinking about bivariate distributions.  One important feature of these distributions is covariance which ultimately establishes whether the two variables tend to "move together positively," "move inversely," or have no relati..
Explore one particular form of diversity : For this assessment you will need to explore one particular form of diversity that interests you, describe It, discuss how it relates to tourism and hospitality
Explain various aspect of finance that management understand : Explain the various aspects of finance that management must understand. Interpret the function of the Financial Balance Sheet in assisting in management's decision making process.
Estimate a population parameter : Remember, a statistic is a function, a procedure used on sample data in order to estimate a population parameter. Thebatting average is the statistic and it is the following procedure: count the total number of times a player goes to bat and count..
Information to draw a conclusion : One main goal of statistics is to use non-complete information to draw a conclusion. Often (especially in economics) the conclusion from statistical analysis can trigger some specific policy response. In your response to this thread, think about..
Determine an appropriate discount rate : Determine an appropriate discount rate and calculate the present value of your total cash flow. - SeeReal Estate Principles: A Value Approach, Exhibit 19-6.
Which of five investments do you think are most affected : What types of risk do you think affects each of the investments? Which of the five investments do you think are most highly affected by the level of interest rates in the economy? Why?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the approximate yield to call

What is the approximate yield to call of a 10% coupon rate, $1,000 par value bond, currently priced at $1200, if the call can be made in seven years at a price of $1,025?

  Risk-free interest rate-the stock pays no dividends

You buy a share of stock, write a one-year call option with X = $15, and buy a one-year put option with X = $15. Your net outlay to establish the entire portfolio is $14.50. What must be the risk-free interest rate? The stock pays no dividends.

  The information has no bearing on the value of the firm

"Which two of the following are the most likely reasons why a stock price might not react at all on the day that new information related to the stock issue is released? The information has no bearing on the value of the firm,

  Should it replace the old steamer

The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years of remaining life. If kept, the steamer will have depreciation expenses of $650 for five years and $325 for ..

  Statements is correct concerning discount bonds

Which one of the following statements is correct concerning discount bonds? Which of the following will increase if the coupon rate increases? Assuming there is no default risk, both a premium bond and a discount bond must share which one of the foll..

  Contrast the gain and loss potential for investors

Compare and contrast the gain and loss potential for investors holding the following positions: long forward, short forward, long call, short call, long put, and short put. Indicate what the terms symmetric and asymmetric mean in this context.

  Describe an optimal inventory policy

The Treknotrics store begins each week with 300 phasers in stock. This stock is depleted each week and reordered. If the carrying cost per phasers is $38 per year and the fixed order cost is $75, what is the total carrying? What is the restocking cos..

  Required rate of return on preferred stock

What is the required rate of return on a preferred stock with a $50 par value, a stated dividend of 7% of par, and a current market price of (a) $70, (b) $83, (c) $117, and (d) $145 (assume the market is in equilibrium with the required return equal ..

  Appropriate data and calculations to make the decision

The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years..

  Calculate the monthly payment required on a mortgage

Calculate the monthly payment required on a mortgage with the following characteristics: (a) Loan Value: $325,000, (b) Interest Rate: 4.25%, and (c) Years: 30.

  Calculate WACC using market value weights

WACC The Patrick's Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its before-tax cost of debit is 13%, and it marginal tax rate is 40%. Assume that the firms long term debt sells at par value. The firm has 576 shar..

  Q1 an s corporation is subject to the following taxa

q1. an s corporation is subject to the following tax.a. corporate income tax. b. built-in gains tax. c. accumulated

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd