Difference between revisions of "Financial Manager"

Revision as of 18:38, 27 August 2020

Financial Manager

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-In [[Principles of Corporate Finance|Principles of Corporate Finance]] a financial manager's role is to answer two questions:
+Financial Manager
-) Which [[Real assets|Real assets]] should the firm invest in?
-How should the cash for the investment be raised?
-<html><img src = "/static/files/MBI/Module%2012/financialmanager.PNG" width="600"/></html>
-# The flow starts when the firm sells securities to investors to raise cash
-# The cash is used to purchase real assets
-# If the firm does well, the return on these assets generate cash flows that more than repay the initial investment
-#
-## This cash can be reinvested in the firm
-## Or return to the investors who bought the securities
-Three types of financial managers exists:
-# The '''Treasurer''', responsible for cash management, raising capital and banking relationships, common in small firms
-# The '''Controller''', responsible for preparation of financial statements, accounting and taxes, next step for larger firms
-# The '''CFO''', responsible for financial policy and corporate planning, required for still larger firms
 [[Category:finance]]