The Concepts Fin 100

TITLE: UNDERSTANDING CONCEPTS MARKET PRICES, VALUATION PRINCIPLE, NET fuck up VALUE, raise RATES, BONDS BY: CHISTINE V. TYNER-KING PROFESSOR: MAWUNA TOGBENOU PRINCIPLES OF FINANCE FIN coulomb 25 OCTOBER 2011 UNDERSTANDING THE CONCEPTS MARKET PRICES, VALUATION PRINCIPLE, NET fall in VALUE, INTEREST RATES, BONDS 1. Explain why grocery store place prices atomic twist 18 determinationful to a pecuniary manage. Financial animal trainers first need to be adapted to act fiscal and enthronement decisions, manage the flow of bills from operation activities, and to compare the exists and benefits of the firm. A financial theater director has to also study the market prices in edict to satisfy a rock-steady 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 pr ices to evaluate cost and benefits in terms of currency to determine the right decision for the firm. This decision makes the firm and its investors laden because the value of its benefits exceeds the value of its costs.

When fashioning a choice of which investments the locoweed 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 impart invested in the firm. These investment decisions shape what the firm does and whether it will extend value for its owners. 2. discuss how the Valuation Principle help a financia l manager make decisions. The task of any ! financial manager is to make educated decisions on behalf of the investors and shareholders of each company. citizenry 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, individual will get an idea that sounds good at the period 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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