Role Of A Financial Manager
Running Head: The Role of the Financial Manager Paper
The Role of the Financial Manager
The role of the financial is to maximize a shareholder's value. A shareholders' wealth is represented by the market price of a firm's common stock. The financial manager should seek to maximize the present value of the expected future returns to the owners of the firm. In an efficient market, a financial manager maximizes stock prices and identifies and implements projects that add value to the firm (i.e. projects that contribute more than they cost). Lastly, financial managers also raise financing by issuing financial instruments that cost less than the financing raised.
The financial manager of a firm is synonymous with financial planning. The basic components of financial planning comprise of the investment opportunities the firm elects to take advantage of, the amount of debt the firm chooses to employ, and the amount of cash the firm must decide upon for its growth and......
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Approximate Word Count: 869
Approximate Pages: 4 (250 words per double-spaced page)
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