Special Topics

plays a vital role in the company’s success. As cash flows into the company, the finance manager thinks of how it will be used daily and how it will help the firm sustain its operations in the future.

• Financial Management

• Financial Manager

• Financial Decision

• Financing Decision

it is concerned with raising, allocating and controlling the firms’ fund.

• Financial Management

• Finance

• Financial Decision

• Financial Manager

It is  the most important of the three decisions when it comes to value creation.

• Investment Decision

• Financing Decision

• Risk-Return Trade offs

• Dividend Policy

This entails an outflow of resources with the expectations of a benefit in the form of cash inflow in the near future.

• Financing Decision

• Investment Decision

• Financial Management

• Dividend Decision

Its role is to look for resources that will give the company the lowest weighted  average cost of capital.

• Financial Managers

• Financing Decision

• Dividend Decision

• Investment Decision

Financial Managers must find way to provide money for the activities of the firm

• Financial Management

• Financial Decision

• Investment Decision

• Dividend Policy

It is equally important to know what sound dividend policy is a good financial signal to the market their continually assesses the company.

• Dividend Decision

• Finance

• Financial Management

• Financing Decision

An increase in return is coupled by a corresponding increase in risk.

• TRUE

• FALSE

cannot be expected that whatever financial decision is made will immediately favor the favor the firm.

• True

• False

It poses a potential conflict of interest between the stockholders and the managers and the creditors

• Agency Theory

• Stockholders and Managers

• Risk Trade offs

• Conflict Theory