{"id":574,"date":"2014-07-08T16:31:03","date_gmt":"2014-07-08T16:31:03","guid":{"rendered":"http:\/\/zh.aceessays.com\/tc\/?p=574"},"modified":"2015-01-18T20:41:23","modified_gmt":"2015-01-18T20:41:23","slug":"the-role-of-financial-management","status":"publish","type":"post","link":"https:\/\/www.aceessays.com\/tc\/the-role-of-financial-management\/","title":{"rendered":"The role of Financial Management"},"content":{"rendered":"<h3>The role of Financial Management<\/h3>\n<ul>\n<li>Test the FEASIBILITY of the proposed strategy<\/li>\n<li>IS IT POSSIBLE TO PUT INTO PLACE?<\/li>\n<li>Are the financial resources available?<\/li>\n<li>It is likely that the strategy will require capital investment<\/li>\n<li>How much and when?<\/li>\n<\/ul>\n<h3>CONT\u2019D<\/h3>\n<ul>\n<li>Project the estimates of the relevant future cash flows generated by the project (incremental flows)<\/li>\n<li>This projection would be presented as a full cash budget<\/li>\n<li>This will reveal if the cash resources are available to fund the project<\/li>\n<li>Does company need to raise more finance?<\/li>\n<\/ul>\n<h3>contd<\/h3>\n<ul>\n<li>Identify which type of finance is required short\u2013term OR long-term?<\/li>\n<li>If long-term what are the merits of issuing equity, issuing debt or raising loan facilities?<\/li>\n<li>CONSIDERATION MUST BE MADE to the consequences of such a decision!<\/li>\n<\/ul>\n<ul>\n<li>Think Mogdigliani &amp; Miller \u2013 effect on cost of capital<\/li>\n<li>Effect on shareholder wealth<\/li>\n<\/ul>\n<h3>MINIMISE THE RISK<\/h3>\n<ul>\n<li>Systems and procedures should be in place to minimise unsystematic risks<\/li>\n<li>Investment appraisal is undertaken<\/li>\n<li>4 key investment appraisal techniques can be applied<\/li>\n<\/ul>\n<ul>\n<li>Advantages of the payback period:<\/li>\n<li>Simple concept to understand<\/li>\n<li>Easy to calculate (provided future cash flows have been calculated)<\/li>\n<li>Uses cash not accounting profit<\/li>\n<li>Takes risk into account (in the sense that earlier cash flows are more certain in nature)<\/li>\n<\/ul>\n<p>The Payback Period<\/p>\n<p>Essay Writing, Click here: <a href=\"http:\/\/www.aceessays.com\/tc\/\">\u8ad6\u6587\u4ee3\u5beb<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The role of Financial Management Test the FEASIBILITY of the proposed strategy IS IT POSSIBLE TO PUT INTO PLACE? Are the financial resources available? It is likely that the strategy will require capital investment How much and when? CONT\u2019D Project the estimates of the relevant future cash flows generated by the project (incremental flows) This projection would be presented as a full cash budget This will reveal if the cash resources are available to fund the project Does company need to raise more finance? contd Identify which type of finance is required short\u2013term OR long-term? If long-term what are the merits of issuing equity, issuing debt or raising loan facilities? CONSIDERATION MUST BE MADE to the consequences of such a decision! Think Mogdigliani &amp; Miller \u2013 effect on cost of capital Effect on shareholder wealth MINIMISE THE RISK Systems and procedures should be in place to minimise unsystematic risks Investment<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-574","post","type-post","status-publish","format-standard","hentry","category-notes"],"_links":{"self":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/comments?post=574"}],"version-history":[{"count":1,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/574\/revisions"}],"predecessor-version":[{"id":1557,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/574\/revisions\/1557"}],"wp:attachment":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/media?parent=574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/categories?post=574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/tags?post=574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}