Fin200

In: Business and Management

Submitted By ericabrock90
Words 353
Pages 2
Week #1 Checkpoint: Financial Management Goals Erica Brock Due Sunday Nov. 25, 2012 Nic Lane
Financial Management refers to a rulebook which a business must follow to be accountable to their shareholders, stakeholders and the general public. See financial management is the essential because a big amount people can be affected by the unethical behaviors and the actions on a business. The employees deserves to know what’s going on in the upper management and with the company as a whole just in case in advance of potential but yet serious problems. The shareholders and the general public have to know to because the shareholders got to know what are going on with company and what they’re investing. Their money depends on its financial strength of the company.
The general public has to know for the fact of the transactions of a public traded company, just in case if there is catastrophe, which they could be responsible for it bailing out of the company including with the taxpayers money. Economic status in company’s market place could include price earning ratios, the earnings per share, the price and cash ratios, book value per share, dividends yielding, market value per share and the marker and book ratios. The market value gives the management an ideal of what the company or firm investors thinks of their performance and future prospects. If a company’s ratios are good then the market value ratios can or should reflect on that and stock prices may go high.
The increasing of a company’s stock prices depends on the business managers trying to maximize the wealth. When stock prices increases an individual who holds the stocks wealth does increase too. If the stock prices goes up the firms or company’s value increases and the net worth of the individual who owns the stock will increase. When managers or management makes decisions it affects the stockholders in many…...

Similar Documents

Ergwefgfnfhedsfghsedfgeasdfdsgvfdbvcxgesdgfd

...FIN200 Corporate Finance (2nd Term 2012-2013) Solution for Corporate Finance, Ross, Westerfield, and Jaffe, 9th edition CHAPTER 20 ISSUING SECURITIES TO THE PUBLIC Answers to Concepts Review and Critical Thinking Questions 1. A company’s internally generated cash flow provides a source of equity financing. For a profitable company, outside equity may never be needed. Debt issues are larger because large companies have the greatest access to public debt markets (small companies tend to borrow more from private lenders). Equity issuers are frequently small companies going public; such issues are often quite small. Additionally, to maintain a debt-equity ratio, a company must issue new bonds when the current bonds mature. From the previous question, economies of scale are part of the answer. Beyond this, debt issues are simply easier and less risky to sell from an investment bank’s perspective. The two main reasons are that very large amounts of debt securities can be sold to a relatively small number of buyers, particularly large institutional buyers such as pension funds and insurance companies, and debt securities are much easier to price. They are riskier and harder to market from an investment bank’s perspective. Yields on comparable bonds can usually be readily observed, so pricing a bond issue accurately is much less difficult. It is clear that the stock was sold too cheaply, so Eyetech had reason to be unhappy. No, but, in fairness, pricing the stock in such a......

Words: 4216 - Pages: 17

Acf 2011 Sem 2

...Business Organisations Taxation Accounting Systems and Design and Development OR Accounting and Information Systems Microeconomics Principles Introductory Statistics OR Statistical Data Analysis Cost & Management Acc’g Finance Finance Audit & Assurance Legal Framework & Comm. Law Legal Framework & Comm. Law Aus. Corp. Law Aus. Tax. Law Info. Systems Info. Systems Economics Quantitative Methods Quantitative Methods Southern Cross University Kings Own Institute, Sydney BBus (Accounting) ACC100 Introduction to Accounting ACC101 Introduction to Financial Accounting ACC201 Financial Accounting ACC204 Corporate Accounting and Reporting ACC302 Advanced Accounting ACC200 Introduction to Management Accounting ACC202 Management Accounting FIN200 Corporate Financial Management ACC300 Auditing and Assurance BUS101 Introduction to Business Law BUS200 Law of Business Organisations aCC301 Tax Law ACC203 Accounting Information Systems BUS102 Introduction to Microeconomics BUS105 Business Statistics Acc’g Systems & Processes Acc’g Systems & Processes Corp. Acc’g & Reporting Corp. Acc’g & Reporting Accounting Theory Cost & Management Acc’g Cost & Management Acc’g Finance Audit & Assurance Legal Framework & Comm. Law Aus. Corp. Law Aus. Tax. Law Info. Systems Economics Quantitative Methods BBus and combined degrees (except with Law) (including twinning arrangement with Sydney College of Business and IT and Institute of Business Studies Port Moresby) Acc’g Systems & ACC10249......

Words: 16200 - Pages: 65

Scavenger Hunt Questions and Answers

...delivery and document design. Additionally, students will continue to practice and apply rhetorical principles of composition, such as patterns of organization, methods of development, analyses of purpose and audiences' needs, in combination with appropriate voice, style, tone, content, and format. Students will exercise their ability to conduct research, and incorporate, organize and document research into their own technical writing documents. Creating these researched documents will also improve skills in formatting, revising, editing, and incorporating graphics. Students will continue to exercise critical thinking, reading, and writing skills in all of the above endeavors. (Writing Course) Prerequisites: passing scores in ENG110 and ENG120 FIN200 Principles of Finance 3 semester credit hours The objective of this course is for the student to develop an understanding of the concepts and techniques of financial management in the modern business enterprise. Financial decisions affect virtually all production, marketing, and management strategies. Evaluation of the financial risks, returns, and costs is the necessary framework in which all business policies will be examined. Students are expected to have a basic understanding of the concepts and methods of financial management by the completion of this course. Prerequisites: ACC150 Accounting I FOR112 College Orientation 3 semester credit hours This course teaches skills and practices that will assist students in being......

Words: 130938 - Pages: 524

Fin200

...A. Which loan carries the lower effective rate? Consider fees to be the equivalent of other interest. $500,000 * 8.25% = $41,250 Interest $500,000 * 20% = $400,000 Available Effective rate would be $41,250 / $400,000 = 10.312% Fee added loan - $500,000 * 9.75% = $48,750 Interest Effective rate - $54,250 / $500,000 = 10.850% B. If the loan with a 20 percent compensating balance requirement were to be paid off in 12 monthly payments, what would the effective rate be? (Principal equals amount borrowed minus the compensating balance.) (2 * 12 * $41,250) / (12 + 1) * $400,000 $990,000 / 5,200,000 = 19.038% (Order or operation) C. Assume the proceeds from the loan with the compensating balance requirement will be used to take cash discounts. Disregard part babout installment payments and use the loan cost from part a. If the terms of the cash discount are 1.5/10, net 50, should the firm borrow the funds to take the discount? (1.5% / 98.5%) * 360 / (50-10) 1.52% * 9 = 13.680% Cost of dialing to take cash discount = 13.680% D. Assume the firm actually takes 80 days to pay its bills and would continue to do so in the future if it did not take the cash discount. Should it take the cash discount? 1.5% / 98.5% * 360 / 70 1.52% * 5.14 = 7.813% E. Because the interest rate on the loans is floating, it can go up as interest rates go up. Assume that the prime rate goes up by 2 percent and the quoted rate on the loan goes up the......

Words: 456 - Pages: 2

Fin 200 Innovative Educator/Fin200.Com

...FIN 200 Entire Course For more course tutorials visit www.fin200.com FIN 200 Week 1 CheckPoint Financial Management Goals FIN 200 Week 1 Assignment Cash Flow Preparation FIN 200 Week 2 Checkpoint Financial Ratios FIN 200 Week 2 DQ 1 & DQ 2 FIN 200 Week 3 CheckPoint Financial Forecasting FIN 200 Week 3 Assignment Pro Forma Statements FIN 200 Week 4 Checkpoint Break Even Analysis FIN 200 Week 4 DQ 1 & DQ 2 FIN 200 Week 5 CheckPoint Long-Term and Short-Term Financing FIN 200 Week 5 Assignment Alternative Financing Plans FIN 200 Week 6 Checkpoint Credit Policy Decisions FIN 200 Week 6 DQ 1 & DQ 2 FIN 200 Week 7 CheckPoint Short-Term Financing FIN 200 Week 7 Assignment Loan Scenarios FIN 200 Week 8 Checkpoint Time Value of Money FIN 200 Week 8 DQ 1 & DQ 2 FIN 200 Week 9 Capstone CheckPoint Present Value, Future Value, and Annuity Due _______________________________________________________ FIN 200 Week 1 Assignment Cash Flow Preparation For more course tutorials visit www.fin200.com Assignment: Cash Flow Preparation- Due on Sunday Complete Problems 27, 28, & 29 on pp. 51-53 of Foundations of Financial Management. _______________________________________________________ FIN 200 Week 1 CheckPoint Financial Management Goals For more course tutorials visit www.fin200.com CheckPoint: Financial Management Goals- Due on Friday Write a 200- to 300-word paper describing the goals of financial management. The description should include......

Words: 346 - Pages: 2

Forecasting

...how to pay personal monthly bills. A long standing company is no different, and then the previous two companies otherwise it would be long standing. Pro forma income statements, cash budget, and other budgets used together equal a pro forma balance sheet are used by business small and large to obtain lending, set production levels, forecast sales, and forecast profits. What financial forecasting is looking at is the pro forma balance sheet this is the end product of other budgets plans. Pro forma balance sheet shows at a glance assets and liabilities. Businesses use this information to determine gross profits and projected sales income. References University of Phoenix. (2009). Financial Forecasting. Retrieved from University of Phoenix, FIN200 website. ...

Words: 328 - Pages: 2