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
Business Activity Cycle The interest rates also depend on business cycles as above. Because the economy moves in the four (4) business cycles, such interest rates will shift l

Weighted Average Cost of Capital Weighted Average Cost of Capital or WACC is also called the overall or composite cost of capital. Since various capital components have diffe


Explain about the monetary role of banks. The Monetary Role of Banks: • A bank is a financial intermediary. • Bank reserves are the currency banks hold within their va

Conditions for Lease Finance Lease finance is ideal within the following circumstances: a) Whenever the asset depreciates faster. b) Whenever the asset is matter to obso

Question 1: Consider a 5-year $10,000 endowment assurance issued to a select life aged 30 under the following bonus schemes:- (a) Simple reversionary bonuses of 5% p.a., 6%i

Petroleo Brasileiro (PBR) has just issued 1M one year bonds. Each bond hasa face value of1,000 Reais. Owners of the bonds are entitled to receive $R 1000 back at the end of the yea

Five years ago, you bought a house for $151,000, with a down payment of $30,000, which meant you took out a loan for $121,000. Your interest rate was 5.75% fixed. You would like to

Ask questioAustralian’s Speleological App Projectn #Minimum 100 words accepted#

(a) A couple has just celebrated their 25th wedding anniversary. What is the probability of them celebrating their 50th wedding anniversary, if the husband is aged exactly 50, his