Think about the importance of the finance function

Assignment Help Financial Management
Reference no: EM13951009

Did you ever stop to think about the importance of the finance function for a successful, multinational company (i.e, McDonalds, Apple, Johnson & Johnson, etc)? Someone has to manage the cash flow, bank relations, payroll, purchases of plant and equipment, and the acquisition of capital. Economic variables, such as gross domestic product, industrial production, disposable income, unemployment, inflation, interest rates, and taxes (to name a few) must fit into the financial manager’s decision model and be applied correctly. Is the company being run for the benefit of stockholders or top management? Based on key concepts learned in this Business Finance class, please explain finance concepts that businesses have to overcome in the area of financial statements (balance sheets, income statements, and the statement of cash flows), retained earnings, shareholders’ equity, depreciation, and historical/replacement cost. Please include at least two (2) of the following in your discussions and explain how they affect the financial process.

Capital Budgeting Techniques (decision making: replacement, expansion, post-audit, net present value, mutual exclusive projects, payback periods, etc.)

Project Cash Flows and Risk (cash flows, project evaluation, replacement analysis, acceptance/rejection of the project)

The Cost of Capital (components costs of capital, cost of debt, cost of retained earnings, and weighted average cost of capital)

Reference no: EM13951009

Questions Cloud

Recommend the key decision-making criteria : From the scenario for Katrina's Candies, determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs.
What are some emerging technologies available : What are some emerging technologies available in the marketplace today?
Identify the basic facts dates and purpose of the event : Identify the basic facts, dates, and purpose of the event in 2 to 3 sentences in the Identify column. Include why the event is significant in the Significance column, and add a reference for your material in the Reference column.
Convert each subject''s age and height into a z-score : Using the z-score of ±1.645 for the 5 percent cutoff and the z-score of ±1.96 for the 2.5 percent in the tail, identify the subject identification (ID) number for subjects who are closest to the cutoff for the upper 2.5 percent and 5 percent of th..
Think about the importance of the finance function : Did you ever stop to think about the importance of the finance function for a successful, multinational company (i.e, McDonalds, Apple, Johnson & Johnson, etc)?  Project Cash Flows and Risk (cash flows, project evaluation, replacement analysis, accep..
Explain the reactivity of metals in their respective groups : What are metals? What are non metals? What are metalloids? Explain the reactivity of metals in their respective groups. How the non metals are subdivided based on their reactivity in periodic table? Explain the amphoteric nature of Beryllium based on..
Compare and contrast deontology and utilitarianism : The Consequentialism Debate: Compare and contrast deontology and utilitarianism. Briefly discuss the differences between Bentham and Mill's versions of utilitarianism. Discuss the political and ethical implications of utilitarianism
Planning in supply chain operations management : The demand for housing is characterized by a regular pattern of increasing to a peak, then falling. When the demand reaches a low point, it then repeats the pattern. This pattern usually takes place over a 3- to 5-year period. This is an example o..
How can we benefit from them : How can we benefit from them?

Reviews

Write a Review

Financial Management Questions & Answers

  What will be the balance in the account at close of business

Assuming a 7 percent annual compound interest rate, what will be the balance in the account at the close of business on July 1, 2020?

  Calculate the exercise value of the option

NORREL Corporation's stock is selling for $35 per share.   An investor is considering buying a call option with an exercise price of $40. The investor is willing to pay the premium of 50 cents per option. Calculate the exercise value of the option? W..

  Expected net increase in annual depreciation charges

The Completely Natural Gardening Center is considering installing a new overhead sprinkling system. The expected net increase in annual operating cash flows is $40,000 and the expected net increase in annual depreciation charges is $8,000. If Complet..

  Calculate the dividends per share

Calculate the dividends per share and Determine the net asset value of the firm should the company not exercise the option to repurchase its shares.

  What is the amount of payment that will be due

Popoye's fried chicken just took out an 8 percent interest-only loan of 50000 for three years. Payments are to be made at the end of each year. what is the amount of the payment that will be due at the end of year 3

  Bond of firm in severe financial distress has a coupon rate

A 10-year bond of a firm in severe financial distress has a coupon rate of 11% and sells for $915. The firm is currently renegotiating the debt, and it appears that the lenders will allow the firm to reduce coupon payments on the bond to one-half the..

  What is the present value of each option

Banks everywhere are offering a rate of 5%. You have just won the $1,000,000 lottery and they are offering you four options to receive your winnings:

  Conduct a stock repurchase or distribute dividends

Sunny Corp is an oil drilling company and has some free cash flow that is not expected to be used for growth or investment projects. The company plans to distribute to its sharholders but is still deciding whether they should conduct a stock repurcha..

  Bonds on the market making annual payments

Essary Enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of $1,000, and selling for $950. At this price, the bonds yield 6 percent. What must the coupon rate be on the bonds?

  Find your amount due at the closing

You are interested in purchasing a home listed at $120,000. The down payment is 30% and the balance will be financed with a 20-year mortgage at 9% and 3 discount points. You put down a deposit (applied to the down payment) of $15,000 when you signed ..

  What is the real amount-assume annual compounding

You want to have $0.7 million in real dollars in an account when you retire in 30 years. The nominal return on your investment is 9 percent and the inflation rate is 5 percent. What is the real amount you must deposit end of each year to achieve your..

  Evaluate the current and quick ratios

Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?

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