Tuesday, December 30, 2014

What are the decisions taken by a financial manager


      A Financial manager takes various decisions for a business Organization. Broadly a financial manager takes three types of decisions 
  1.  Investment decision  
  2. Financing decision   
  3.  Dividend decision
Investment decision: - Investment decisions involve choosing the best alternative from the available investment opportunities. There are two types of investment opportunities in a business organization, one is short term and another one is long term. Capital Budgeting is a technique for evaluating long term investment projects.
      
     Financing decision: - Financing decision involves choosing the best sources of fund so that the company can minimize weighted average cost of capital.

        Dividend decision: - Dividend decision involves decisions about distributing dividends or retaining for reinvestment.

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