Financial Manager
Jump to navigation
Jump to search
In Principles of Corporate Finance a financial manager's role is to answer two questions: 1) Which Real assets should the firm invest in? 2 How should the cash for the investment be raised?
- 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