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- Can a company have a high net income but not enough cash to pay its bills? Explain your response. Give me one scenario or example to support your response.Suppose you are the chief financial officer (CFO) responsible for the financial statements of Philip Morris. What ethical issue would you face as you consider what to report in your company’s annual report about the cash payments? What is the ethical course of action for you to take in this situation? Who are the stakeholder of this company?In making a financing decision, how would a financial manager answers questions like: 1. How should the cash required for investment be raised?2. Should we borrow from a bank or should we issue new shares ofstocks?
- a)- Do manager of a firm care more about their EPS than retained earnings? Explain why, just start your explanation with because.... b) Do vendors of a firm care more about cash flow than EPS? Explain why, just start your explanation with because.... c) Do investors care more about EPS than stock price? Explain why d) Do banks (or creditors who loaned money to a firm) care more about the firm's working capital or the firm's dividends? Which one and why? e. Which of the following will raise a firm's stock price: stock repurchases or a new stock issue? Briefly explain why? Start your explanation with because...In the real world, what are the main challenges that a Finance Manager faces while tryingto run a business entity? Elaborate on the same.What is your primary objective in choosing a company in which to invest money? What key items or relationships will you look for in each financial statement that will help you decide in which company to invest?
- Why is it important for persons in marketing, accounting, production and other areas in the firm to understand finance?1. Explain the concept of finance.2. How is finance related to other functional areas in a business organization (marketing, production, accounting, etc.)?3. What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant.4. Why do you need to understand finance?5. What goal should always motivate the actions of the firm’s financial manager?Financial managers must be able to balance current assets and current liabilities to ensure the viability of a business in the short term. Operating cycles and cash cycles are two short-term areas a financial manager must keep track of in managing a business. • How are the operating and cash cycles of the firm different? Why are they important?
- 1. Why do we study financial management? Enumerate its benefits to the success of a business. 2. What is the role of finance in the development of an economy? 3. How does the financial manager affect the firm's overall business strategies?Assume you are the financial officer of a major firm. The president of the firm has just stated that she wishes to reduce the firm's investment in current assets since those assets provide little, if any, return to the firm. How would you respond to this statement? 2. As long as a firm maintains a positive cash balance, why is it essential to review the firm's cash flows?Discuss the role of finance in business. What is the purpose of financial management? Describe the kinds of activities that financial management involves. What kind of tools do financial managers leverage to access and/or monitor the health and performance of a business?