Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
Financial Management is a vital activity in any organization. It is the process of planning, organizing, controlling and monitoring financial resources with a view to.
Financial management is an organic function of any business. Any organization needs finances to obtain physical resources, carry out the production activities.
Financial management refers to the strategic planning, organising, directing, and controlling of financial undertakings in an organisation or an institute. It also includes applying management principles to the financial assets of an organisation, while also playing an important part in fiscal management.
New business leaders and managers have to develop at least basic skills in financial management. Expecting others in the organization to manage finances is.
This Specialization covers the fundamentals of strategic financial management, including financial accounting, investments, and corporate finance. You will.
Financial decisions and controls: Financial management and financial managers play a crucial role in making financial decisions and exercising control over.
Financial Management (FM) serves both academics and practitioners concerned with the financial management of nonfinancial businesses, financial institutions.
From Financial Management
DFL = EBIT / (EBIT − Interest)
= 2,00,000 / (2,00,000 − 50,000) = 2,00,000 / 1,50,000 = 1.33 (approx.)
MM no tax vs MM with tax:
Hence, taxes make capital structure relevant in the basic MM-with-tax view.
Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
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Risk–return trade-off means higher risk requires higher expected return.
Investors demand compensation for uncertainty in cash flows.
Simple diagram/flow (draw/write):
Low risk → Low return
Higher risk → Higher expected return
Financial decisions should compare expected returns after considering risk and timing of cash flows.