DECIDING OUT NEW SOURCES OF FINANCE

A business firm is always in need of funds. So the financial manager on the basis of forecast of the volume of operations, should decide upon the needs and prepare the detailed financial plan for the procurement of funds.

It is the responsibility of the financial manager evaluate the prospective cost of fonds as against the anticipated Payout Ratios

Dividend Decision:

Determination of the allocation of net profits.

Checking upon Financial Performance Cost of Capital

a, Financing Decisions

b. Investment Decisions

c. Dividend Decisions

Pay out Ratios profits from the use of these funds by the operating units to which they are to be allocated.

LIQUIDITY vs PROFITABILITY | MAXIMISATION OF RETURN | WEALTH MAXIMISATION | Constraints - Policy Decisions - Profitability | IMPLICATIONS OF WEALTH MAXIMISATION | Suppliers of Loan Capital | RELEVANCE OF WEALTH MAXIMISATION | Retaining earning and Undistributed profits | Managerial finance function | Functions of Financial Management | FINANCIAL FORECASTING | MANAGEMENT OF CORPORATION ASSET STRUCTURE | THE MANAGEMENT OF INCOME | MANAGEMENT OF CASH | DECIDING OUT NEW SOURCES OF FINANCE | CONTACT AND CARRY NEGOTIATIONS FOR NEW FINANCING | ANALYSIS AND APPRAISAL OF FINANCIAL PERFORMANCE | INCIDENTAL OR ROUTINE FUNCTIONS | CAPITAL BUDGETING DECISION | CURRENT ASSET MANAGEMENT | Maximisation of Share Value | RESPONSIBILITIES OF FINANCIAL MANAGEMENT IN THE FIRM | Functions of the Treasurer and Controller | TASKS OF FINANCIAL MANAGEMENT | CHALLENGES OF FINANCIAL MANAGEMENT | Gross and Net Savings | Household Savings | How to politely win when credit disputes and problems arise