The Concepts Fin 100

TITLE: UNDERSTANDING CONCEPTS MARKET PRICES,
VALUATION PRINCIPLE, NET baffle VALUE,
raise RATES, BONDS
BY: CHISTINE V. TYNER-KING
PROFESSOR: MAWUNA TOGBENOU
PRINCIPLES OF FINANCE FIN 100
25 OCTOBER 2011

UNDERSTANDING THE CONCEPTS MARKET PRICES, VALUATION PRINCIPLE, NET PRESENT VALUE, INTEREST RATES, BONDS
1. Explain why market prices atomic number 18 useful to a financial manage.
Financial animal trainers first need to be adapted to act financial 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 good market strategy plan so that the firm can be profitable. In a warring market, goods can be bought and sold 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 wealthy because the value of its benefits exceeds the value of its costs.




When fashioning a choice of which investments the corporation 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 have invested in the firm. These investment decisions shape what the firm does and whether it will add value for its owners.
2. discuss how the Valuation Principle help a financial manager make decisions.
The task of every financial manager is to make educated decisions on behalf of the investors and shareholders of each company. People 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, someone will get an idea that sounds good at the time 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: Ordercustompaper.com



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