Financial management, Finance Basics

Financial Management

On the other hand a financial manager has to meet the company's strategic or long term needs as long term investment are helpful to the company since:

1. It influences the company size as assets

2. It influences its growth as plough back

3. Finances incidental needs.

4. It influences the company's long-term survival - this is with continuous investment.

These investments will call for long term financing in form of owners finance as Ordinary Share Capital and Revenue reserves.  This is a base on that other finances are raised.  The company will furthermore use external financing as example debentures, loans, debts, mortgages, lease finance etc.  These finances have to be employed in acceptable or reasonable financial mix.  This implies such the company's gearing level is remained low i.e. the relationship between creditors and owners finance.  This have to be below 67% otherwise the company may be forced into subsequently and receivership liquidation.

Posted Date: 1/29/2013 12:45:51 AM | Location : United States

Related Discussions:- Financial management, Assignment Help, Ask Question on Financial management, Get Answer, Expert's Help, Financial management Discussions

Write discussion on Financial management
Your posts are moderated
Related Questions
Klose Outfitters Inc. believes that its optimal capital structure having of 60% common equity and 40% debt, and its tax rate is 40%. Klose have raise additional capital to fund its

What are the Methods of Underwriting An underwriting agreement may take any of the below three forms: (i) Standing behind the issue: Under this method, underwriter guarant

Solutions to agency problem The bondholders might receive the following procedures to protect themselves from the process of the shareholders that might dilute the value of th

Compare the three investments below in terms of their riskiness. What is the best way to evaluate the riskiness of an investment given the information you have on them?

I am struggling with a PowerPoint Presentation 8-10 slide the calculations and understanding Traditional IRAs and Roth IRAs, I guess that I need to prepare this for an audience. Sh

(a) RBC has 100 loans outstanding, each for $1 million, which it expects to be repaid today.  Each loan has a 5% probability of default, in which case the bank is not repaid anythi

Factors contribute to increasing the profitability of a business Several other factors contribute to increasing the profitability of a business. For companies that are highly d


Given the following Present Value Plot for Projects A and B, which are mutually exclusive projects, answer the following questions: (i) What is the DCFROR for Project A? fo