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Q. Describe Concepts of finance function ?
1) The finance function in the business task in the providing funds needed by the enterprises on the term that one most favorable in the light of the objective. This approach assume that the expenditure decision giving right to the demand of the capital are made where as a business and finance manager is left with the task of determine of the law these function can be raised.
2) Another approach relating to the function to the cash. This approach implies that finance activity is related to the all activity in the business the finance function is not that broad as implies that the function.
3) The third approach is more acceptable finance function as procurement of the funds and their effects utilized in the business the finance manager has to play major role in the business planning.
Determination of spread Daily interest rate = 5.11/ 365 = 0.014% per day Variance of cash flows = 1000 × 1000 = $1000000 per day Transaction cost = $18 per transaction
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