logo

Managing Financial Resources and Decision | Assignment

10 Pages1833 Words147 Views
   

Added on  2020-01-06

Managing Financial Resources and Decision | Assignment

   Added on 2020-01-06

ShareRelated Documents
MANAGING FINANCIAL RESOURCES ANDDECISIONS
Managing Financial Resources and Decision | Assignment_1
TABLE OF CONTENTSIntroduction......................................................................................................................................3Task 2...............................................................................................................................................32.1 Analyses the costs of different sourcesof finance....................................................................................................................................32.2 Importance of financialplanning(FP)...............................................................................................................................42.3 Information needs ofdifferent decision makers............................................................................................................5Task 3...............................................................................................................................................53.1 Cash budgeting.......................................................................................................................53.2 Calculations of unit costsand make pricing decisions.........................................................................................................63.3 Investment appraisal..............................................................................................................8Conclusion.......................................................................................................................................9References......................................................................................................................................10
Managing Financial Resources and Decision | Assignment_2
INTRODUCTIONResource management and financial decisions are the main aspects of any business.Without efficient management company finds difficulty to achieve goal and it has to face manydifficulties to run its business operations. Business entities or decision maker play an importantrole in establishing and understanding the financial resources. Present study will coverimportance and need of financial planning (Johnston and Nedelescu, 2006). Financialperformance and budgeting will be discussed in the present report with the help of cashbudgeting, investment appraisal techniques. TASK 22.1 Analyses the costs of different sourcesof financeStarting an independent coffee shop is not an easy task; it requires lots of differentresources. There are diverse sources of finance which are as below:Internal sourcesExternal sourcesInternal sources: It involves various sources; Retained earnings, sales of fixed assets,Business revenues. External sources: It includes; bank loans, franchising, government sources, preservedearnings, issue of debentures, issue of share capital etc. are some sources which are required tostart and run business.Cost of equity: It refers as rate of return of share holder on equity investment. Rate of returncan be earned by investing equal money into different investment and with equal risk (Murphyand Yetmar, 2010). Cost of equity= (Annual dividend for next year/ present inventory price)+Growth rate ofdividendOr Capital Asset Pricing Model (CAPM) determines the cost of equity:ra = rf + Ba (rm-rf)Here, rf= return rates on risk free securitiesBa= the beta of the investment in question
Managing Financial Resources and Decision | Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
FINA 6000 Managing Finance
|7
|891
|39

Valuation of shares of JB Hi Fi Ltd
|11
|1896
|188

Financial Management: Cost of Capital, Capital Structure, Investment Appraisal Techniques
|20
|3671
|158

Capital Structure Theories and Calculation of Cost of Capital for Desklib
|14
|3192
|289

Capital Structure and WACC: Determination and Usefulness
|7
|1281
|290

Assignment on Cost of Capital
|5
|1130
|62