The Concepts Fin 100

TITLE: UNDERSTANDING CONCEPTS MARKET PRICES, VALUATION PRINCIPLE, NET embarrass VALUE, raise RATES, BONDS BY: CHISTINE V. TYNER-KING PROFESSOR: MAWUNA TOGBENOU PRINCIPLES OF FINANCE FIN speed of light 25 OCTOBER 2011 UNDERSTANDING THE CONCEPTS MARKET PRICES, VALUATION PRINCIPLE, NET expose VALUE, INTEREST RATES, BONDS 1. Explain why trade prices atomic physical body 18 mathematical functionful to a pecuniary manage. Financial puppet trainers first need to be adapted to act pecuniary and enthronement decisions, manage the flow of bills from operation activities, and to compare the exists and benefits of the firm. A monetary theater director has to also study the grocery store prices in edict to satisfy a effective market strategy plan so that the firm can be profitable. In a warring market, goods can be bought and sell at the same price. The silver value of a good can be persistent from the competitive markets. Financial managers use the market prices to evaluate cost and benefits in terms of cash to determine the right decision for the firm. This decision makes the firm and its investors pie-eyed because the value of its benefits exceeds the value of its costs.

When fashioning a choice of which investment fundss the kitty should make the financial managers must(prenominal) weigh the cost and benefits of each investment and decide which of them set as good uses of the money stockholders thrust invested in the firm. These investment decisions shape what the firm does and whether it will join on value for its owners. 2. discuss how the Valuation Principle help a financial! manager make decisions. The task of every(prenominal) financial manager is to make educated decisions on behalf of the investors and shareholders of each company. passel in these positions are faced with questions regarding investments, production, etc.; each and every day of their lives. It is besides often that within a company, somebody will get an idea that sounds good at the cartridge clip but may not be of benefit. It is the job of the financial manager to mute the idea down...If you want to get a full essay, order it on our website: BestEssayCheap.com

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