Enterprise management knowledge by counseling Fina
Corporate Counsel examination counseling:
Financial Management Overview
(a) The financial management of task
financial management is an economic management of the corporate finance activities, handling corporate financial relationships.
Financial management specific tasks as follows: the
first, reasonable arrangements for the financial revenues and expenditures, to keep the business strong capacity to pay and solvency
, to lower capital cost and less risk of financing for enterprise development to raise the funds needed
rational use of funds, choose the best funds to invest in and accelerate transfer funds quicken, and constantly improve the effect of the use of funds invested as little money as possible, to obtain the greatest possible results of operations
reasonably determine the proportion of profit distribution and form of distribution, improve the profitability of enterprises, enhance the overall value of
(b) financial management of the content
financial management, capital management, funding cycle and turn
financial management:
1, investment decisions
investment is an enterprise invested in order to obtain the proceeds of an act in the future.
business investment can be divided according to different criteria the following types:
first, direct investment and indirect investment
second, long-term investment and short-term investments
financing decision-making
financing refers to the enterprise capital requirements based on production and business activities the behavior of the appropriate way to obtain funds.
corporate sources of funding, according to the different signs can be divided into the following categories:
first, equity capital and borrowed funds
, long-term capital and short-term capital < br> 3 turbotax download, the dividend decision
dividend policy is to draw up the dividend allocation decisions, to determine the enterprise’s net profit in the number as a dividend to shareholders, and how many stay in business as a reinvestment
(c) financial management the functions
financial decision-making functions
, financial plan functions
financial control functions
Second, financial management the values
(a) the time value of money
time value of money of the basic concepts of time value of money
increase the value of the currency after a period of investment and reinvestment, also known as time value of money.
2, the calculation of the time value of money
(1) simple interest and compound interest
simple interest to each phase of interest is calculated according to the principal, regardless of the long term, this Jin Suosheng interest does not join the principal and then to calculate the interest.
compound interest means not only to calculate the interest on the principal, after an interest-bearing period quicken download, also born interest in the principal interest, by the period of roll count. Reference (2) the final value of compound interest and present value
compounding the final value is the value of a fund now has for some time after compounding.
compounding the present value of future cash income or expenses at compound interest calculated present value, it can be said for obtain the future principal and interest and the need to advance the principal.
(3) payment is calculated
first, ordinary gold final value
the ordinary present value
to (b) risk and the remuneration
1 the risk the concept
of risk refers to the degree of change that may occur in certain conditions and a certain period of time results, the event itself, the uncertainty.
, risk category < br> (1) market risks
market risk refers to the risks posed by those factors that affect all companies. the unique
(2) company-specific risk
company risk is the risk of specific events by individual companies the risks posed.
company-specific risk is divided into two types of business and financial risks.
, risk and reward relationship
the risks and rewards relationship is, the greater the risk, the required rate of return on The relationship between the higher
risk and expectations of return on investment can be formulated as:
expected return on investment = risk free rate + risk free rate





