Finance for managers
Finance for managers’ course is essential since its emphasis on effective management of funds to aid in achieving profit maximization and shareholders’ wealth maximizations. The attainment of these objects enables the organization to achieve its set objective in a competitive environment. the mains items that have covered
in the course, they include financial goals, working capital, determining the firm’s value, stock valuation, working capital, and capital budgeting(Ahmad & Malik, 2014). The finding from the PA1 documented the importance of working capital to the organizations. The existence of effective working capital is essential since it contributes towards boosting the organization’s financial health and position in the competitive enabling the organization to thrive in the competitive environment. Working capital is an integral measure of the liquidity position of the organizations. The liquid organization is the one that has the potential of honoring their obligation when they fall due. Stock valuation, on the other hand, aims at establishing the theoretical value or intrinsic value that the share can be sold or purchased. This is essential since it enables the organization to make the right decision of either sale or purchase sales. The effective valuation of stocks boosts organization performance and productivity in a competitive environment. The implementation of effective working capital and stock valuation enables the organization to flourish and command a higher market share. The determination of the firm’s value is essential since it enables the organization to evaluate its value in terms of assets and liabilities. Capital budgeting, on the other, is an important aspect that enables the organization to make the right investment decisions(Imegi, 2015). The organization should invest in projects that have the potential of yielding positive net present value. The other investment appraisal technique used by the organization include the internal rate of returns, payback, which was not fully covered.
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Finance for the manager course is integral since it enables management to make the right decisions. The primary decision made by the finance managers they include investment, liquidity, and dividend decisions. These decisions are highly influenced by the company’s working capital, which gauges the firm’s liquidity positions(Imegi, 2015). The organization is required to ensure an effective valuation of stock to aid in effective decision making of either selling or buying stocks. The organization is also required to embrace effective investment appraisal techniques to aid in the choice of right projects that have the potential of yielding positive returns. This is critical since it contributes towards the improvement of the organization’s performance.