INTRODUCTION TO FINMAN

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deals with acquisition, management & investment of financial resources to enable a business company to attain it objectives toward growth, stability, profitability & liquidity

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FINANCE

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Where providers and usersof funds interact with the help of a financial intermediary

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FINANCIAL INSTITUTIONS & MARKETS

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3 AREAS of finance

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1. Financial Institutions, Investments & Financial Management

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involves buying & selling of financial securities, analysis in making investments and risk management.

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INVESTMENTS

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Concerned with raising, allocating & controlling the firm's funds.

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FINANCIAL MANAGEMENT

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2 Categories of Finance & what is their coverage

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1. 1. Public - government revenues, spending and effect on economy

2. 2. Private - application of finance which can be personal, non-profit or business related.

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3 Distinct types of Decisions by the Finance Manager

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1. 1. Investment Decision

2. 2. Financing Decision

3. 3. Dividend Policy Decision

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This decision is the life support of the business to continue its existence. Fund allocation must be prudent and risks must be well-calculated.

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INVESTMENT DECISION

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Knowledge where to source funds for the operations of the firm, considering the optimum financing mix to meet expected ROI.

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FINANCING DECISION

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Why is Dividend Policy important?

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a. sound dividend policy is a good financial signal to the market

b. Dividend declaration reflects a profitable status

c. Companies with earnings retention show growth potential