I believe that studying at Hull University Business School has given me a brighter future and equipped me with the skills I need to begin a successful future career. The finance module simulation begins its online display with plant improvements. The common stock section of the finance module displays the max stock issue box which is set at $13,596. The finance manager will finance Apple by issuing half the cost in new stock and half the cost in new bonds. If Andrews wants to retire 200,000 shares of stock the finance manager enters 200 in the box.
In the finance module, the max stock retire box is set at $3,399 and changes during the course of the simulation. In the finance module, under the current debt section there are boxes for interest rate, current debt due this year and borrow. The finance module also includes a cash position section displaying two cash amount boxes. Answer: Capital structure is the relative proportion of different sources of long term finance.
The Andrew’s finance manager can issue long term debt in order to finance the new low end product Apple. There are three other sections under finance in the team member guide: section 4.4.3 stocks; section 4.4.4 emergency loans from Big Al; and section 4.4.5 credit policy. Answer: Financial Planning refers to determination of firms financial objectives, financial policies and procedures.
Q14: Identify the decision taken in financial management which affects the liquidity as well as the profitability of business. The application of financial management techniques (such as capital budgeting techniques) helps to answer the questions like which asset to buy, when to buy and whether to replace the existing asset with new one or not. Financial management helps to decide what level of current assets is to be maintained in a firm and how to finance them so that these assets are utilized efficiently.
The sources of long term finance may be equity shares, preference shares, bond, term loan etc. Financial management (capital structure theories) guides in selecting these sources of financing. The importance of financial management is not limited to the managers who make decisions in the firm. Sometimes, forensic accountants also render assistance to company management with regards to avoiding fraudulent practices.