The answer are because :
1. Prepare for the workplace of tomorrow
1. Prepare for the workplace of tomorrow
2. Boardening expectations of financial knowledge and skills
3. Use and understand financial terminology & concept in team communication
3. Use and understand financial terminology & concept in team communication
4. Developing cross functional capabilities
5. Critical Thinking
After you know about that 5 things now you can go to the
so what is Definition Of Financial Management ? Financial Managem definition of financial management.ent easily are the activities of getting, buy & using money. In the wide one , Financial Management are activities or knowledge that concern with acquisition, financing, and management of assets with some overall goal in mind.
So there are 3 words that important to you to know :
Acquisition : Make plan what you want to buy (Buying assets)
Financing : Find sources of funds or money
Management assets : Manage asset in order to get sales , earnings or return
Acquisition : Make plan what you want to buy (Buying assets)
Financing : Find sources of funds or money
Management assets : Manage asset in order to get sales , earnings or return
Finish with that now we go to the finance management decision .
So that is the Balance sheet. In balance sheet we know it have 2 side . Left hand side (assets part) and the right hand side (Liabilities & owner's equity) . Left hand side needed to help you to make Investment Decision & Right hand side needed to help you to make Finance Decision.
First we will talk about the Investment Decision. Investment decision is related to the acquisition or easily we can said buying. the things that you needed to do the decision are :
First we will talk about the Investment Decision. Investment decision is related to the acquisition or easily we can said buying. the things that you needed to do the decision are :
1. Begins with a determination of the total amounts of assets needed to be hold by the firms.
2. What is the optimal firm size.
3. What specific assets should be acquired.
4. What assets (If any) should be reduced or limited.
Done with that we jump to the Financing Decision. Financing decision is related to the financing or easily where we can get the money . So you need to know 2 type of financing :
1. Stock (Usually For The Big Company)
2. Debt (Usually For The Small Company)
So what is the best type of financing? Stock ? or debt ? the answer is mix bot of it .
Debt have a positive effect that is you can take money from there without needed to tell the bank easily. But debt have a bad effect that is you must pay a high interest, but sometimes this bad effect can be a good effect for the company (when the company try to escape from the high taxes)
Stock have a positive effect that are first you don't need to pay interest, second is minimum risk to get the bankrupt. Negative effect is you can't get money as high as you want it.
We need to know the rule of stock .
So the people who put their money to the company called as investor. The process they put the money to the company called as investment. So when the investor do the investment they will get the stock. This stock show us the valuable of the company. If the stock price rise that mean the valuable of the company is rise too. There are 2 kind of things that company give to the investor :
1. Dividend : Share the company profit to the investor (This can be share or not that depends on the company)
1. Stock (Usually For The Big Company)
2. Debt (Usually For The Small Company)
So what is the best type of financing? Stock ? or debt ? the answer is mix bot of it .
Debt have a positive effect that is you can take money from there without needed to tell the bank easily. But debt have a bad effect that is you must pay a high interest, but sometimes this bad effect can be a good effect for the company (when the company try to escape from the high taxes)
Stock have a positive effect that are first you don't need to pay interest, second is minimum risk to get the bankrupt. Negative effect is you can't get money as high as you want it.
We need to know the rule of stock .
So the people who put their money to the company called as investor. The process they put the money to the company called as investment. So when the investor do the investment they will get the stock. This stock show us the valuable of the company. If the stock price rise that mean the valuable of the company is rise too. There are 2 kind of things that company give to the investor :
1. Dividend : Share the company profit to the investor (This can be share or not that depends on the company)
How to determine we must give the dividend or not ? You can determine it by find out your EAT (Earning After Taxes)
That how to find out the EAT (earning after taxes) after you find out EAT . You have 2 options, First option you can keep that money for your company interest on the next year or next period , to buy new equipment , or expand your company and the others. Second you can share that EAT as dividend to our investors or shareholders.
2. EPS (Earnings Per Share) : The company must give this to the shareholders it is a must for the company.
The last one of the financial management is Assets management Decision. This decision is about how do we manage existing assets efficiency.
After learn all of that , do you know what is the main purpose of the company ? From the finance perspective the main purpose of the company is no longer for the profit but for the shareholders wealth. We can increase shareholders wealth through the value of the company .
So that's all !
The last one of the financial management is Assets management Decision. This decision is about how do we manage existing assets efficiency.
After learn all of that , do you know what is the main purpose of the company ? From the finance perspective the main purpose of the company is no longer for the profit but for the shareholders wealth. We can increase shareholders wealth through the value of the company .
So that's all !
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